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Jul 20, 2019 at 14:19 comment added Magic is in the chain Likely because matching the other 5 by luck sounds a bit too coincidental!
Jul 20, 2019 at 14:17 comment added user13892 so this $\$4$ could be error right?
Jul 20, 2019 at 14:13 comment added user13892 Advanced probably because this course will be covering pricing in general including derivative pricing using risk neutral valuation and other complex stuff. Unfortunately I got stuck in the most basic stuff 😥. I am hoping he will present the ideas more intuitively since I never was able to explain complex ideas in plain English and my professors were mathematicians not economist or finance professionals so butchered the financial intuition. Hopefully I will have more intuitive ideas about instruments and their use after this course. While I expect this course will be butchering mathematics.
Jul 20, 2019 at 11:22 comment added Magic is in the chain And have added some thoughts around the derivation. Why is it called advanced investment btw?
Jul 19, 2019 at 21:43 history edited Magic is in the chain CC BY-SA 4.0
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Jul 19, 2019 at 21:27 comment added Magic is in the chain That 4 is the only one that does not match right?
Jul 19, 2019 at 20:47 comment added user13892 Yes if you can show the derivation of the increment formula that would be helpful.
Jul 19, 2019 at 20:45 comment added user13892 If you apply the same logic for the case of 20 year investment then $0.75*{1.1}^{20}=\$5$ but he shows the value as $\$4$.
Jul 19, 2019 at 20:27 history answered Magic is in the chain CC BY-SA 4.0