This paper concentrates on the primary theme of CONSIDER A CLAIM Φ (X(T)) WITH PRICING FUNCTION F(T, X). PROVE PROPOSITION 15.4, I.E. PROVE… in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 40. For more details and full access to the paper, please refer to the site.
Consider a claim ϕ(X(T)) with pricing function F(t, x). Prove Proposition 15.4, i.e. prove that dF under Q has the form
where W is a Q-Wiener process.
The martingale measure Q is characterized by any of the following equivalent facts