Homework Assignments

1. Tuesday, July 10: Homework 1. Initial Probability Review, Chapters 1-2 in Ross. To be completed and turned in (at class) on Thursday, July 12; to be discussed in the recitation on Wednesday, July 11, at 7:30-9:00pm in 633 Mudd. Solutions.

2. Thursday, January 12: Homework 2. More Probability Review, Chapter 3 in Ross. To be completed and turned in (at class) by Monday, July 16; to be discussed in the recitation on Sunday, July 15, 4:00-6:00pm in 303 Mudd. Solutions.

3. Monday, July 16: Homework 3. Markov chains, Chapter 4 in Ross. To be completed and turned in (at class) by Wednesday, July 18; to be discussed in the recitation on Tuesday, July 17. Solutions.

   Monday, July 16: Homework 3 - numerical part. Markov chains, Chapter 4 in Ross. YOU HAVE MORE TIME FOR THIS PART. To be completed and turned in on Wednesday, July 25. Solutions.

4. Wednesday, July 18: Homework 4. More Markov chains, Chapter 4 in Ross. To be completed and turned in on Monday, July 23; to be discussed in the recitation on Sunday, July 22. Solutions.

   Monday, July 23: Homework 5. Exponential Distribution and The Poisson process. Chapter 5 in Ross. To be completed and turned in on Wednesday, July 25; to be discussed in the recitation on Tuesday, July 24. Solutions.

5. Wednesday, July 25: Homework 6. Continuous-time Markov chains. Chapter 6 in Ross. To be completed and turned in on Monday, July 30; to be discussed in the recitation on Sunday, July 29. Solutions.

6. Monday, July 30: MIDTERM EXAMINATION, 10:00am-1:00pm.

7. Wednesday, August 1: Homework 7. Renewal processes, Chapter 7 in Ross. To be completed and turned in on Monday, August 6; to be discussed in the recitation on Sunday, August 5. Solutions.

8. Monday, August 6: Homework 8. Arbitrage and Option pricing, Section 10.4, To be completed and turned in on Monday, August 13; but still to be discussed in the recitation on Thursday, August 9, 3pm. Solutions.

9. Wednesday, August 8: Homework 9. Brownian motion, Chapter 10. To be completed and turned in on Monday, August 13; to be discussed in the recitation on Sunday, August 12, 4pm. Solutions.

10. Monday, August 13: Homework 10. martingales and more Brownian motion, To be completed and turned in on Monday, August 20; to be discussed in the recitation on Thursday, August 16, 3pm. Solutions.

11. Wednesday, August 15: Homework 11. The Black-Scholes formula and more Brownian motion, Chapter 10 in Ross. To be completed and turned in on Monday, August 20; to be discussed in the recitation on Sunday, August 19, 4pm. Solutions.

12. Monday, August 20: Review for final exam.

13. Monday, August 22: FINAL EXAM, 10:00am-2:00pm, Room 833 Mudd.