Hi @David Harper CFA FRM ,
Below I will now show you the calculations that I have made, modifying what you was told me in the previous question. As you can see, I can't achieve the same result as you.
Could you help me?
Hello again, David,
I think there's a mistake in the term pointing out.
In section a we have said that the average was 0.5*(x2+x1) and in the resolution of the exercise we have put 0.5*(x2-x1).
Am I mistaken?
I'm doing this exercise but I don't understand the output because there are intermediate data that I don't know where they come from. Can you help me please?
the data I'm indicating in yellow is a data that is given in the exercise or have you obtained it by clearing it?.
I don't understand why you say on the right side of the equation 1.1^2. where does this term come from?
Consider n up jumps and 12-n down jumps to get 121 in the end. Therefore,
100*(1.1)^n*(1/1.1)^12-n=121=> 1.1^(2n-12)=1.1^2=> 2n-12=2=>2n=14=> n=7