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14. Show that the cost of a claim with payoff Sn(Sn K) is N W Vo = sa K So, 1 + 2 where w=

14. Show that the cost of a claim with payoff Sn(Sn K) is N W Vo = sa K So, 1 + 2 where w= (u + d)(1+i) ud. 14. Show that the cost of a claim with payoff Sn(Sn K) is N W Vo = sa K So, 1 + 2 where w= (u + d)(1+i) ud

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