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We consider a market model as in the previous lessons. A numraire is an adapted...

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Finance

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We consider a market model as in the previous lessons. A numraire is an adapted sequence Z = (Zn)osnsn s.t. Zo = 1, Zn > 0 for n = 1,..., N and Zn = Vn () for some admissible strategy 4 (n = 1,...,N). Denote by s2 the Z-discounted vector price process: S = Su, n= 0,..., N. - Z Prove that for any predictable sequence o = (on)i 0 for n = 1,..., N and Zn = Vn () for some admissible strategy 4 (n = 1,...,N). Denote by s2 the Z-discounted vector price process: S = Su, n= 0,..., N. - Z Prove that for any predictable sequence o = (on)i<><> <><>

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