16. Starting with the powers series, f x Py n0 xn n! , consider the linear...
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16. Starting with the powers series, f ðxÞ ¼
Py n¼0 xn n! , consider the linear approximation f1ðxÞ ¼ 1 þ x. As indicated in (6.33), f ðxÞ ð1 þ xÞ x2 2
! 1;
as x ! 0. Demonstrate this result by calculating the power series for this ratio function, and confirming that it is absolutely convergent, which then justifies a substitution of x ¼ 0.
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Introduction To Quantitative Finance A Math Tool Kit
ISBN: 978-0262013697
1st Edition
Authors: Robert R. Reitano
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