Question: Show that for d = 1 and n = 0, 1, . . ., NV -1, On+1 = AVn and AVnASn - AVRASn AST On+1

Show that for d = 1 and n = 0, 1, . . ., NV -1, On+1 = AVn and AVnASn - AVRASn AST On+1 : i(1 +i)-'Sn+1 - isn These equations express the trading strategy in terms of the stock price and value processes

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