23. Suppose that u < e(r)h. Show that there is an arbitrage opportunity. Now suppose that d...
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23. Suppose that u < e(r−δ)h. Show that there is an arbitrage opportunity. Now suppose that d >e(r−δ)h. Show again that there is an arbitrage opportunity.
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Derivatives Markets Pearson New International Edition
ISBN: 978-1292021256
3rd Edition
Authors: Robert L. Mcdonald
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