Question
Hello, Appreciate if you can help me to find out the solution for the following problem. Denote by V(t)V(t) the replicating portfolio of the payoff
Hello, Appreciate if you can help me to find out the solution for the following problem. Denote by V(t)V(t) the replicating portfolio of the payoff in problem number 4 (in this unit's practice problems and problem set) that does replication by investing the domestic currency in the foreign stock, the foreign bank account and the domestic bank account. Can you say, in terms of V(t), how much the replicating portfolio invests in each of these three assets, in each of the above two problems? Is there a way to attach files? Kind Regards.
Following are the problem 4 of unit's practice problems and its solution and problem 4 of problem set and its solution respectively.
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