Show that Note that By considering the Taylor expansion of n(p ln u/d + ln d) and
Question:
Show that
Note that
By considering the Taylor expansion of n(p′ ln u/d + ln d) and np′ (1 − p′)(ln u/d)^{2} in powers of Δt, show that
where nΔt = τ .
Transcribed Image Text:
lim (n, k, p') = N(d₁) n→∞ where p' =ue ueratp and d₁ = In +(r + ²) t O√T
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