Prove that, when the security / provides income at rate q, equation (21.9) becomes li + q

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Prove that, when the security / provides income at rate q, equation (21.9) becomes li + q — r = Xa. (Hint: Form a new security, /* that provides no income by assuming that all the income from / is reinvested in /.)

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Options Futures And Other Derivatives

ISBN: 9780130090560

5th Edition

Authors: John C. Hull

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Question Posted: Oct 18, 2024 07:03 AM

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Prove that, when the security / provides income at rate q, equation (21.9) becomes li + q

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Options Futures And Other Derivatives

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