Hi, Question 8 from april 2012 has pointed me to page 3 of the tables. The formula i am trying to differentiate is
d/dK (1/100 \int^\infty_K D(a)da)
if i was to use the page 3 formula
b(y)=\infty
so b'(y)=0
f(b(y),y)=D(\infty)
a(y)=K
so a'(y)=1
f(a(y),y)=D(K)
putting this in i get
d/dK (1/100 \int^\infty_K D(a)da) = 1/100(-D(k)+\int^\infty_K d/dK D(a)da). Where does the rightmost term go in the solutions as the answer seems to just be 1/100(-D(k))?
Also on the topic of Black Scholes, april 2013 question 9 - mentions 'Q is the EMM', what does this abbreviation mean?
Thank you
d/dK (1/100 \int^\infty_K D(a)da)
if i was to use the page 3 formula
b(y)=\infty
so b'(y)=0
f(b(y),y)=D(\infty)
a(y)=K
so a'(y)=1
f(a(y),y)=D(K)
putting this in i get
d/dK (1/100 \int^\infty_K D(a)da) = 1/100(-D(k)+\int^\infty_K d/dK D(a)da). Where does the rightmost term go in the solutions as the answer seems to just be 1/100(-D(k))?
Also on the topic of Black Scholes, april 2013 question 9 - mentions 'Q is the EMM', what does this abbreviation mean?
Thank you