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On a given trading day, which goes from t = 0 to t = 1 , a trader perfectly anticipates the price paths of two

On a given trading day, which goes from t

= 0

to t

= 1,

a trader perfectly anticipates

the price paths of two securities X and Y

.

She can only buy one of the securities at

the beginning of the trading day and must sell it at some point before the end of the

day. The price paths are

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