Question: 1. Consider the Black-Scholes market. (a) Write out the dynamics of the assets in this market in the objective space. (b) Write out the

1. Consider the Black-Scholes market. (a) Write out the dynamics of the assets in this market in the objective space. (b) Write out the dynamics of the assets in the risk neutral space. (c) Using the bank account as numeraire, write out the dynamics of the risky asset in terms of the numeriare) in both the objective and the risk neutral space, and comment its dynamics.

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