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A Markov Chain Cannot Consist of All Absorbing States

question 29

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A Markov chain cannot consist of all absorbing states.


Definitions:

Forward Contract

An agreement that isn't standardized between two parties to purchase or sell an asset at a future date determined today at a price agreed upon today.

Legally Binding

An agreement enforceable by law, with obligations that must be fulfilled by all parties involved.

Agreed-upon Price

The price that has been mutually accepted by the buyer and seller in a transaction.

Risk Profile

An evaluation of an individual's or organization's willingness to take risks, as well as their ability to handle the consequences of those risks.

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