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Exercise 3. Give an alternative proof of Proposition 8.6 by comparing the following two portfolios at time tsT: Portfolio A: [One long European call with

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Exercise 3. Give an alternative proof of Proposition 8.6 by comparing the following two portfolios at time tsT: Portfolio A: [One long European call with strike K2 maturing at T] + [(K2 - K1) ZCBs maturing at T). Portfolio B: (One long European call with strike Ki maturing at T)

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