WEEK 3 QUIZ

10/10 GRADE!

Question 1
Let f(x,y)=sin(xy). Compute fx.
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y*cos(x*y)

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Correct

Explanation

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Question Explanation
To compute the partial derivative wrt x, treat y as a constant and take the derivative of f as a function of a single variable x.

Question 2
Let f(x,y)=sin(xy). Compute 2fxy.
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cos(x*y)-(y*x*sin(x*y))

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Question Explanation
Take the partial derivative of f wrt y then take the partial derivative of fy wrt x.

Question 3
Compute the Hessian of the function f(x,y)=sin(xy) and evaluate it at the point (,). How many unique values are there?

Your Answer

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Correct

1.00

Total
Question Explanation
The Hessian is the array of second order partial derivatives.

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Question 4
Let f(x,y)=x2+y2, x=sin(), and y=cos(). Compute dfd.
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1.00

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Question Explanation
Short cut: substitute x=sin() and y=cos() into the expression for f to see that f(x,y)=1. Make sure you understand the chain rule
formula though. (please provide answer as a numerical response.)

Question 5
Let F(x,y)=cos(x)sin(y)14=0. Compute dydx.

Answer for Question 5

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tan(x)*tan(y)

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Correct

Explanation

1.00

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Question Explanation
Use implicit differentiation.

Question 6
vega(P)=vega(C)
Your Answer

Score

Explanation

True

Correct

1.00

False

Total

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Question Explanation
Take the partial derivative of the put-call parity relation wrt .

Question 7
Does an increase in S have a positive or negative effect on the price of a European call option?

Your Answer
Positive

Score

Correct

1.00

Explanation

Negative

Total

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Question Explanation
Is (C) greater than or less than zero?

Question 8
Does an increase in S have a positive or negative effect on the Delta () of a European call option?

Your Answer
Positive

Negative

Score

Correct

1.00

Explanation

Total

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Question Explanation
Is greater than or less than zero?

Question 9
Does a positive change in r have a positive or negative effect on the price of a European call option?

Your Answer
Positive

Score

Correct

1.00

Negative

Total
Question Explanation
Is greater than or less than zero?

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Explanation

Question 10
Does a positive change in t have a positive or negative effect on the price of a European call option (assume that the underlying asset does
not pay a dividend, i.e., that q=0)?

Your Answer

Score

Positive

Negative

Total
Question Explanation
Is greater than or less than zero?

Correct

1.00

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Explanation