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The share price process, , is a geometric random walk (i.e. it increases by a factor of or decreases by a factor of at each
The share price process, , is a geometric random walk (i.e. it increases by a factor of or decreases by a factor of at each step, as in the binomial model). Establish an equivalent measure under which the discounted share price process, =^St, is a martingale.
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