Introduction to Financial Mathematics

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Issue:

Business

 

Written by:

Carol S

 

Date added:

May 11, 2015

 

Level:

University

 

Grade:

B

 

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13 / 3549

 

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1975 times

 

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3. Differential Equations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Lecture Notes ? MAP 5601 map5601LecNotes.tex i 8/27/2003 1. Finite Probability Spaces The toss of a coin or the roll of a die results in a finite number of possible outcomes...
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For a coin we might denote this sample space by {H, T} and for the die {1, 2, 3, 4, 5, 6}. More generally any convenient symbols may be used to represent outcomes. Along with the sample space we also specify a probability function, or measure, of the likelihood of each outcome. If the coin is a fair coin, then heads and tails are equally likely...
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