Question
Answer the following parts of this question, based on these 4 equations. Justify your answers for each part F(X)=1.32(1.68)^x G(X)=2.32(0.65)^x H(X)=.32(-0.35)^x J(X)=.32(2.32)^x K(X)=0.32(0.32)^x a. Which
Answer the following parts of this question, based on these 4 equations. Justify your answers for each part
F(X)=1.32(1.68)^x G(X)=2.32(0.65)^x H(X)=.32(-0.35)^x J(X)=.32(2.32)^x K(X)=0.32(0.32)^x
a. Which function(s) has a value of 1.32 when x=0? b. Which function(s) has/have a growth rate faster than 100%? c. Which function(s) has/have a growth rate of -68%? d. Which function(s) has/have indicate a decay model? e. Which function(s) cannot be an exponential function?
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An Introduction to the Mathematics of Financial Derivatives
Authors: Ali Hirsa, Salih N. Neftci
3rd edition
012384682X, 978-0123846822
