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1. Consider the Black-Scholes model of stock price S(t) = S(0) exp ((a -8- )t +oZ(t)), Ost0. (a) [2 points] Derive the formula for P(S(t)

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1. Consider the Black-Scholes model of stock price S(t) = S(0) exp ((a -8- )t +oZ(t)), Ost0. (a) [2 points] Derive the formula for P(S(t) 1. 1. Consider the Black-Scholes model of stock price S(t) = S(0) exp ((a -8- )t +oZ(t)), Ost0. (a) [2 points] Derive the formula for P(S(t) 1

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