 Solution

ID: past-exam-of-the-probability-statistics-and-options-ii-course-of-the-university-of-oxford/2011/m/m4/b/iv/solution

E [2^{T}] = g (2) = \frac{2}{3} + (14 - 10)^{- 1/2} = \frac{7}{6} .

The evaluation at two is valid because two is inside the power-series radius

14/5

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