# Consider a continuous-time environment, with (e) as a variable outside of the market. (a) Suppose the final

## Question:

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 \(e\).

Fantastic news! We've Found the answer you've been seeking!

## Step by Step Answer:

**Related Book For**