Suppose that the price of a currency A expressed in terms of the price of currency B

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Suppose that the price of a currency A expressed in terms of the price of currency B follows the process: dS = (A-r)S dt+ S dz, where ra is the risk-free interest rate in currency A and r is the risk-free interest rate in currency B. What is the process followed by the price of currency B expressed in terms of currency A

Posted Date: May 18, 2024 10:05 AM

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Suppose that the price of a currency A expressed in terms of the price of currency B

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