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Prove that lim_n rightarrow infinity (1 + t)^n = e^t. Derive an expression for S(n, T, r) = sigma^nT _t=1 q^t, with q = 1/(1
Prove that lim_n rightarrow infinity (1 + t)^n = e^t. Derive an expression for S(n, T, r) = sigma^nT _t=1 q^t, with q = 1/(1 + r). Give a financial interpretation of S. What can you say about this expression for large n
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