Question: Deduce the differential equation for a derivative dependent on the prices of two non-dividend-paying traded securities by forming a riskless portfolio consisting of the derivative
Deduce the differential equation for a derivative dependent on the prices of two non-dividend-paying traded securities by forming a riskless portfolio consisting of the derivative and the two traded securities.
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Suppose that the price of the derivative depends on the prices and of two trade... View full answer
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