Consider the two-period securities model shown in Fig. 2.5. Suppose the riskless interest rate r violates the
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Consider the two-period securities model shown in Fig. 2.5. Suppose the riskless interest rate r violates the restriction r
Fig. 2.5.
Transcribed Image Text:
S(0;92) = 4 S(1; 0,0) = 3 1 S(1; 0,0) = 5 S(2; ₁) = 4 - S(2; ₂) = 2 S(2; ₂) = 4 S(2; c)=6
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