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= Exercise 2.17 Given a trinomial single-stock model with R 0, S(0) = 10 and Su = 20, Sm = 15, Sd = 7.5 show
= Exercise 2.17 Given a trinomial single-stock model with R 0, S(0) = 10 and Su = 20, Sm = 15, Sd = 7.5 show that the deriva- tive security H can be replicated if and only if 3H" 5H + 2H+ = 0. = Exercise 2.17 Given a trinomial single-stock model with R 0, S(0) = 10 and Su = 20, Sm = 15, Sd = 7.5 show that the deriva- tive security H can be replicated if and only if 3H" 5H + 2H+ = 0
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