Question: 2.14. This exercise is challenging. Extend the previous modification to the case where the dividend has both a deterministic and stochastic component; over a small
2.14. This exercise is challenging. Extend the previous modification to the case where the dividend has both a deterministic and stochastic component; over a small time interval the dividend’s contribution to increasing the value of the portfolio would be
δΔt+ρΔW.
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