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Mathematics, 28.04.2021 17:00 guzmanbrandon3259

5. A math professor wants to sell his house as soon as its value reaches a certain target. The target value, itself, grows linearly in time, with constant rater >0(due to inflation). The value of the house followsa Brownian motion. The professor cannot sell the house in the first year (he has nowhere to move untilnext year), but will do so as soon as the value of the house reaches the target value, after the first year. Compute the probability that the professor will ever sell his house:

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5. A math professor wants to sell his house as soon as its value reaches a certain target. The targe...
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