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1. Explain how a Feynman-Kac solution avoids the need to solve the differential equation in the Black-Scholes model.1 2. In the recursive Utility model, what

1. Explain how a Feynman-Kac solution avoids the need to solve the differential equation in the Black-Scholes model.1

2. In the recursive Utility model, what is it that is the main driver of the Risk premium in the marketplace?

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