Question
Consider the following sequence of stock prices: P={10,12.5,11.25,13,15.5}. You can think of this as a time series realization with the time index going from 0
Consider the following sequence of stock prices: P={10,12.5,11.25,13,15.5}. You can think of this as a time series realization with the time index going from 0 to 4. Consider investing $1 in this stock at time 0. How would that grow over time?
Call this new time series A and find the values for time 1 to 4: A={1,A1,A2,A3,A4}. Round to two decimal places.
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Introduction To Mathematical Finance Discrete Time Models
Authors: Stanley R. Pliska
1st Edition
1557869456, 9781557869456
