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the question is shown below in pictures Let f(S, t) = S(t) be an asset that is worth the cube of the price of an

the question is shown below in pictures

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Let f(S, t) = S(t) be an asset that is worth the cube of the price of an underlying stock with price S(t). As always, show all your work and logically justify all your answers. (a) (3 points) Determine whether this asset satisfies the Black-Scholes-Merton partial differential equation. (b) (3 points) Determine the formula for the Ito process that generates this asset. (c) (3 points) Find a formula for E(f (S, T) ). (d) (3 points) Find a formula for Var(f (S, T))

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