Problem Sets  
Math 495 -- Fall 2006

Assignment Due Date Problems
1 9/14 1--12
Hand in 1, 4, 6
Selected solutions to problems 1-12
2 9/26 13-15
22-25
Hand in problems 12,14,15,22,23,25
Solutions to 14,15, 21-25
3 9/28 16-21, 26-30.
31,43
Hand in 19(text, p.29, problem 4), 21 (text, p. 38, problem 2), 27,28 (problems 3 and 4 on page 36), 43
Solutions to this assignment
4 10/03 32-38
Hand in 32, 33, 37
Solutions to this assignment
5 10/17 39-42,44
Hand in 41, 42, 44
These problems will help you prepare for the test! Solutions and/or hints
6 10/26 45-48
Hand in 45, 47, 48
Solutions to 45-49
7 11/2 Do in this order: 53, 50, 54, 55, 56, 57, 51, 52.
Note that 51 and 52 are mostly done in the notes to lecture 15. You should follow along and fill in the details.
The file for problems 50-52 is 495problems6.pdf
The file for problems 53-57 is 495problem7.pdf
Hand in 53, 50, 54, 55, 57
Solutions to problems 50-57
8 11/9 or 11/14 58-70
Hand in 62, 64, 65, 68
Solutions, 58-70
9 11/21 Text: page 90, problem 1. Find the parameter values per month and per day.
Text: problems page 92, problems 1(a), (b); 2(a),(b)
Text: page 98, problems 2, 3, 4;
Text: page 103, problems 3, 5, 6
Hand in page 92,1; page 98, 4; page 103, 5.
Solutions
You can search online for a Black-Scholes price calculator. A better option for learning the formula is to calculate prices using a normal distribution calculator. You can find one on-line at http://rockem.stat.sc.edu/prototype/calculators/index.php3?dist=Normal
10 12/7 78-86
78, 79, 81, 82, 83, 84
Extra credit 86 or 87.
Solutions
10 12/12 87-98
Hand in 92, 95, 97
Solutions