Affichage des articles dont le libellé est for t > 0. Afficher tous les articles
Affichage des articles dont le libellé est for t > 0. Afficher tous les articles

S(0) - Q(0) = 0 =/=> S(t) - Q(t) = 0, for t > 0

jeudi 5 mars 2015





At time 0, the term multiplying dZ is zero if we buy the recommended portions in the result of the problem.



But at time t > 0, the stock prices will not be the same as there were at time 0, therefore the term multiplying dZ would no longer be zero.



And this will not be a risk-free porfolio.



What is wrong with my reasoning?





S(0) - Q(0) = 0 =/=> S(t) - Q(t) = 0, for t > 0
 

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