Consider two exchange options, one that allows you to exchange a share of asset S for a share of asset Q, and another one that allows you to forfeit a share of asset Q and obtain a share of asset S in return. Assume neither of the two stocks pays dividends. Then, the current spot prices of the two assets are the same if and only if the two exchange options have the same price. a) trueb) false

cheater

step-by-step explanation:

geometry: triangles

solvers

lessons

answers archive

call the larger triangle abc

then the smaller triangle cde is similar to abc (all angles are equal, aaa).  

ab is the side that is 36, and we wish to find de, the side corresponding to ab

area_cde = area_abc - area_cde --> area_abc / area_cde = 2

let x=length of de

ratio of areas = (ratio of sides)^2

+2+=+%2836%2fx%29%5e2+

+2+=+1296%2fx%5e2+

++x%5e2+=+1296%2f2+=+648+

25.45584

x = 12

y = 1

for the points!