2.7 A linear system S has the relationship +∞ yn]=]gn-2k] k=-∞0 between its input xn] and outputy[n] g[n]=un]-un-4] (a)x[n]=[n-1]y[n=u[n-2]-u[n-6] (b)x[n=6[n-2]yn=u[n-4]-u[n-8 (c)S is time-varying
Example AFI has SOLD for $300,000 a European call on 100,000 shares of a non-dividend paying stock: S 0 =49 =50 r=5%=20% μ=13% T =20 weeks The Black-Scholes value of the option is $240,000 How does the Fl hedge its risk?