For Monday 27 February: Exercises ¡­

For Monday 27 February: Exercises 1 and 2 from the file ?Exercises.pdf? which is published in the ?Undervisningsmateriale? folder.

Exercise 1 relates specifically to applying the properties of the GBM model. In Exercise 2 the challenge is to study the effect of combining insurance risk and financial risk, and to analyze and understand differences in the risk properties. We will use extensive time to go through these exercises next Monday.