Exercise 24.3.5 The price of a consol that pays dividends continuously at the rate of $1 per

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Exercise 24.3.5 The price of a consol that pays dividends continuously at the rate of $1 per annum satisfies the following expected discounted-value formula:

P(t) = Eπ

∞

t e−

T t r (s) ds dT

Compare this equation with Eq. (24.9) and explain the difference.

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Financial Engineering And Computation Principles Mathematics Algorithms

ISBN: 9780521781718

1st Edition

Authors: Yuh-Dauh Lyuu

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Question Posted: Oct 26, 2024 01:01 PM

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Exercise 24.3.5 The price of a consol that pays dividends continuously at the rate of $1 per

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Financial Engineering And Computation Principles Mathematics Algorithms

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