Question: Prove that lim_n rightarrow infinity (1 + t)^n = e^t Derive an expression for S(n, T, r) = sigma_t=1^nT q^t with q = 1/(1 +

Prove that lim_n rightarrow infinity (1 + t)^n = e^t Derive

Prove that lim_n rightarrow infinity (1 + t)^n = e^t Derive an expression for S(n, T, r) = sigma_t=1^nT q^t with q = 1/(1 + r). Give a financial interpretation of S. What can you say about this expression for large n

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