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  3. hint: let w7 be a brownian motion, xt = w7 bt and

Hint: Let W7 be a Brownian Motion, Xt = W7 Bt and W7* =...

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Finance

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Hint: Let W7 be a Brownian Motion, Xt = W7 Bt and W7* = supo 0, P(X+* > a) = 1-0 +e-2aB 0 1. Let a market model be given. Define: 1. Trading strategy, 2. self-financing trading strategy, 3. arbitrage strategy, 4. completeness of the market model. Hint: Let W7 be a Brownian Motion, Xt = W7 Bt and W7* = supo 0, P(X+* > a) = 1-0 +e-2aB 0 1. Let a market model be given. Define: 1. Trading strategy, 2. self-financing trading strategy, 3. arbitrage strategy, 4. completeness of the market model

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