Some Insights and Applications of CPMs

Now that a fundamental understanding of the importance and relevance of CPM parameters has been obtained, the next logical question is how this is of use or what 

FIGURE 3.25 Constant relative volatility CPMs with a = [5,1,2] at appropriate values showing (a) Case 1 with three real solutions and a TT, (b) Case 2 with three real solutions but two equal roots, and (c) Case 3 with one real solution and two complex solutions. The black dots indicate placement. 

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