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Problem 5. Show that: a) The price of the stock itself, that is when u(t, X,) = Xi, solves the Black-Scholes-Merton partial differential equation; b)

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Problem 5. Show that: a) The price of the stock itself, that is when u(t, X,) = Xi, solves the Black-Scholes-Merton partial differential equation; b) The risk-free interest rate r compounded continuously solves the Black-Scholes PDE, that is when u(t, Xi) = ent

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