Hi,
Ex 5.1, 5.2 in Numpy section
I am not sure about 5.1. I think 5.2 is just put those formulae in the loop to get pricing, but I am not really sure what 5.1 asks me to do. ( I am not familiar with this maturity thing and googled it doesn’t seem to answer this exercise 5.1)
Ex1 in linear algebra section
Not sure about the number 1,000,000 for a condition. Even without discount factor, i.e., the assets pay constant amount for the rest of duration without being discounted, the total money from selling is 150 x durationA x nA + 50 x durationB x nB = 150 x 6 x 100 + 50 x 4 x 50 = 100,000 which is way less than the condition.
Ex2 in linear algebra
y1 = np.array([1, 2, 3])
y3 = np.array([0.5, 0.5])
I think y3 should be y2.
Thanks very much!