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Exercise 8.3 The fairly unknown company F&H INC. has blessed the market with a new derivative, the Mean. With effective period given by (T1, T2]
Exercise 8.3 The fairly unknown company F&H INC. has blessed the market with a new derivative, "the Mean. With "effective period given by (T1, T2] the holder of a Mean contract will, at the date of maturity T2, obtain the amount T2 zi'nde 1 T2-T ** sudu. Determine the arbitrage free price, at time t, of the Mean contract. Assume that you live in a standard Black-Scholes world, and that t
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