Under what conditions do the following statements hold When do we need lognormal distribution of underlying prices Prove these statements rigorously Explain each step Under what conditions do the following statements hold When do we need lognormal distribution of underlying prices Prove these statements rigorously Explain each step 1 10 points 0

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Question: Under what conditions do the following statements hold? When do we need lognormal distribution of underlying prices? Prove these statements rigorously. Explain each step. Under

Under what conditions do the following statements hold? When do we

Under what conditions do the following statements hold? When do we need lognormal distribution of underlying prices? Prove these statements rigorously. Explain each step.

need lognormal distribution of underlying prices? Prove these statements rigorously. Explain each

Under what conditions do the following statements hold? When do we need lognormal distribution of underlying prices? Prove these statements rigorously. Explain each step. 1. [10 points: 0

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