Exercise Solution 10.1

  1. We specify

    [s1]

    where ω = (100  250  –200  500). The mapping function is a linear polynomial.

  2. We have

    [s2]

    [s3]

    [s4]

    [s5]

    and

    [s6]

    [s7]

    [s8]

    [s9]

    [s10]

    [s11]

    Accordingly 0p = 0E(1P).

  3. Using a spreadsheet, we value 0std(1P) = 636.99
  4. Because 0p = 0E(1P), we can apply [10.6]:

    [s12]

    [s13]

    [s14]

 

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