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Question 4 [15 marks] Assume the risk-free asset B, and the stock Se follow the dynamics of the Black & Scholes model (with interest rate

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Question 4 [15 marks] Assume the risk-free asset B, and the stock Se follow the dynamics of the Black & Scholes model (with interest rate r, stock drift , dividend yield q and volatility o). Define the variables 1 = } [log Su du, 0 1 t Ge=e". Let (S.1, t) be the price at time t

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