1. The following prices of the four different stocks are reported from an arbitrage-free market at time...

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1. The following prices of the four different stocks are reported from an arbitrage-free market at time t0 S1 t0 5 12:66; S2 t0 5 12:24; S3 t0 5 20:66; S4 t0 5 18:25 Find out the price of the 5th asset given the following possible values of these assets at time T.

14 3 25 4 11 10 9 2 9 23 24 22 8 25 10 5 6 15 25 10

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Principles Of Financial Engineering

ISBN: 9780123869685

3rd Edition

Authors: Robert Kosowski, Salih N. Neftci

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