Financial market instruments

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Questions

1. Financial market instruments can be divided into two distinct species. What are these pieces?

2. Consider playing the following game - someone tosses a coin and pays you one dollar for heads and nothing for tails. What price should you pay for this prize?

3. a. State the Kolmogorov's strong law of large numbers

b. Why does the strong law fail so badly with forwards?

Reference no: EM133372679

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