thanks guys!! much appreciated. makes perfect sense now.
and ggrzz...just to answer your question... in the solution for Q&A Bank Part 1, question 1.26, they write "A(t,0)" meaning discounting from time t to time 0. This is what confused me! I didn't know why they chose to use A(), when in other questions they had used v(). So after reading both your explanations, it seems either v() or A() can be used correctly. In this case, they could have written "v(0,t)" instead.
thanks again! happy study
yoyo
Last edited by a moderator: Sep 6, 2010