Question: Suppose the interest is compounded continuously. Consider any traded asset whose value v_T in T years is known with certainty. Prove that the current value

Suppose the interest is compounded continuously. Consider any traded asset whose

Suppose the interest is compounded continuously. Consider any traded asset whose value v_T in T years is known with certainty. Prove that the current value of the asset must be v_T times e^-rT, where r is the T -years interest rate, if we assume there is no arbitrage

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