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(b) The current price of an asset is S0 and the asset pays a dividend D at some future time td>0. The annual riskfree interest

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(b) The current price of an asset is S0 and the asset pays a dividend D at some future time td>0. The annual riskfree interest rate is r convertible continuously. We let c(S0;T,X) be the current price of a T-year European call options on this asset with strike price X. (i) Using no arbitrage pricing principle, show that for any 0

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