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Note S t the price of a stock. Assume that S t is the price at t=0, and dS t = S t (dt +
Note St the price of a stock. Assume that St is the price at t=0, and dSt = St(dt + dBt).
Show that Bt2-t is a martingale.
Show that Bt2 + 2t - 1 is not a martingale.
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