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3. Construct a replicating strategy for H. We seek to define o" = (of, of ) for each of the distinct time evolutions. Calculating of: We differentiate between the random variables which comprise of by referring to them as A; and 13, in contrast with the values we are solving for, on and o? (using ? here as we do not need to differentiate between any w ( ? for the first time evolution). Per the predictable representation property, we have: HI = M + XX2 on + on X (181(a,b) + 9/{c,d)) = 31(a,b) + 51(c,d) (02 + 180, = ;) A (02 + 90; = A 90= 7 27 = 3 ' 7 27 :)0