Question: 5. Suppose AS = 3SAt + 4SAX, where AX ~ N(0, At). a. (10) With this AS and two objects used to counter explicit risk,

5. Suppose AS = 3SAt + 4SAX, where AX ~ N(0, At). a. (10) With this AS and two objects used to counter explicit risk, D(S,t) 0.192(8, if), what is the a value. b. (15) Find Ito's Lemma. 0. (20) Find the BlackSchole's equation where, rather than investing in a bank, the money (M) could be invested in a scheme providing rM2At return. (This sure sounds like

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