Show that for any random variable X, we have and apply the result to show the result

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Show that for any random variable X, we have

= = = 0 E[max(X, 0)] - max(E[X], 0) < 2 var(X),

and apply the result to show the result in (4.3.29).

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Mathematical Models Of Financial Derivative

ISBN: 9783642447938

2nd Edition

Authors: Yue-Kuen Kwok

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Question Posted: Jan 05, 2024 10:45 AM

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Show that for any random variable X, we have and apply the result to show the result

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Mathematical Models Of Financial Derivative

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