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1. Recall that rm was the interest rate for compounding m times a year. Consider two values of m, namely m1,m2. Use a replicating portfolio
1. Recall that rm was the interest rate for compounding m times a year. Consider two values of m, namely m1,m2. Use a replicating portfolio argument to express rm1 in terms of rm2. 1. Recall that rm was the interest rate for compounding m times a year. Consider two values of m, namely m1,m2. Use a replicating portfolio argument to express rm1 in terms of rm2
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