Consider a continuous-time environment, with (e) as a variable outside of the market. (a) Suppose the final
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Consider a continuous-time environment, with \(e\) as a variable outside of the market.
(a) Suppose the final payoff is \(V\left(x_{e}, T\right)=x_{e}(T)\). Find \(V\left(x_{e}, t\right)\).
(b) Find a put-call relation that holds for options on a nontraded asset \(e\).
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