Exercise 3.8. Find the Nash equilibria and the subgame-perfect equilibria of the following game. A 2 D 3 E F E 1 B F 702 330 230 0 121 143
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- Find NPV and the Profibility index?Question 3 The Black-Scholes model is a time series (X₂) that follows the dynamics X₁ = X₁-1*exp(μ+0€) where μ, >0 and () is a time series of independent and identically distributed standard Gaussian random variables. Note that E(exp(μ+σt)) = "¹+0² (i) Show that the log-returns of this process X, form a white noise process (ii) Suppose E(X) = 0. Compute E(X₂). Determine if the variance of X, is falling, remains constant or is growing in t.Miller orr Model describes different levels such as____. a. Upper Limit b. Lower limit c. Return Point d. Upper Limit, Lower limit and Return Point
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