Question
Find the value of x, 0 < x < 1, such that 1 paid at time x is equivalent to 1 paid continuously increasing at
Find the value of x, 0 < x < 1, such that 1 paid at time x is equivalent to 1 paid continuously increasing at a rate of t per period at exact moment between 0 and 1. Assume constant force of interest and force of interest is 2.
A .55
B .65
C .75
D .85
E .95
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts
10th Edition
1260013820, 978-1260013825
