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Consider the replicating portfolio of a terminal-value claim C = f(Sn) in the standard binomial market model. (i) Suppose that for any > 1,

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Consider the replicating portfolio of a terminal-value claim C = f(Sn) in the standard binomial market model. (i) Suppose that for any > 1, \f (x) (\x) for all x (1) Prove that at each time t, 0 1, \f (x) (\x) for all x (2) Prove that at each time t, 0

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