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1. Let A(t) be the value of a risk-free asset at time t and S(t) be the value of a risky asset at time t.

1. Let A(t) be the value of a risk-free asset at time t and S(t) be the value of a risky asset at time t. Additionally let A(0)=100,A(1)=102,S(0)=10 and S(1)={128withprobabilitypwithprobability1p where 0

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