Exercise 11.2.1 (1) Prove that a European call is equivalent to a portfolio of a European down-and-out

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Exercise 11.2.1 (1) Prove that a European call is equivalent to a portfolio of a European down-and-out option and a European down-and-in option with an identical barrier. (2) Prove that a European put is equivalent to a portfolio of a European up-and-out option and a European up-and-in option with an identical barrier.

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