(1 + r)n +HnSn1u=c(n, Sn1u). Subtracting one from the other, it turns out that (n, x)= c(n,...

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(1 + r)n +HnSn−1u=c(n, Sn−1u).

Subtracting one from the other, it turns out that

¢(n, x)=

c(n, xu) − c(n, xd)

x(u − d)

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Introduction To Stochastic Calculus Applied To Finance

ISBN: 9781584886266

2nd Edition

Authors: Damien Lamberton, Bernard Lapeyre

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Question Posted: Oct 26, 2024 06:01 AM

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(1 + r)n +HnSn1d=c(n, Sn1d) and
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(1 + r)n +HnSn1u=c(n, Sn1u). Subtracting one from the other, it turns out that (n, x)= c(n,...

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Introduction To Stochastic Calculus Applied To Finance

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