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Show that the cost of a claim with payoff Sn(Sn K) is Vo = $(**) KS, where w= (u + d)(1 + i) ud. Show

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Show that the cost of a claim with payoff Sn(Sn K) is Vo = $(**)" KS, where w= (u + d)(1 + i) ud. Show that the cost of a claim with payoff Sn(Sn K) is Vo = $(**)" KS, where w= (u + d)(1 + i) ud

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