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13.1. Suppose that S is a stock with S(0) = 36. Let D(t, S) be the time t price of a derivative with underlying asset

13.1. Suppose that S is a stock with S(0) = 36. Let D(t, S) be the time t price of a derivative with underlying asset S satisfying the following: 0.09 Op +0.03S AD + srp0.05D. 2 (a) Determine the price of a different derivative that pays the following in two years: if S(2)

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