April 2007 Exam Q2(i)

Discussion in 'CT8' started by ?????, Apr 3, 2008.

  1. ?????

    ????? Member

    Hi

    I'm hoping that someone can help with the following:

    April 2007 Q2(i):

    I'm wondering about the second term of the variance. The answer sums over all i unequal to j. This is different to what the notes say where it's a double summation over all j and then all i unequal to j?

    Is this because the question reads that no short selling is allowed?

    Tks
     

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