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LOGIN - Define the following theorem
i" 'Define t ( fo) following) ffft er Them- 'Clt with hasem) the hrebolilistic representationSoe yy := =, ., Soe)f)f ]XT ) El'tXt ") t't )sent t h't (f r(It )( Sof( htt- t where) XtytrliH- t ItHt )H # -¥ -y . t= === . ., fThem of bythe solution givenis :{ ¥f 'ffOfft IE) O( I ]( often'stetHt f let oldHis) V-teeo.TTHeo)r tt+ . s-. .-IR)ft hlytrli) AHt× - t, = -Theorem ( )PIDE PRICEALTERNATIVE LOGIN - iDefine (At fo))) f'Clt Themwith em of bythe solutionSoey givenis is=, := .,{ Itf't 04¥ !offt.ieE) I210¥Cr E rflt.gl '"" t et old" " team," v.' H+ "t -. o' .'. - .° ",flax hey) +.net, +, .= . )(Theorem PIDE NESSLOG MONEYIN :- I)(bytotimeDefine forwardlogthe maturity emtheand ta tmoney z rezmess y t: =- . .,theRewriting valuepayoff variablesthe terms of theseand option in new :)e 't Xxrt t( - ( 1)th) etft)UCE T keC zz =-- -- ,, ,ofThe the
La soluzione fornita è la seguente:))E's 's o's sot' oe=t - ,-- ,t -!It"!';' of Barriertheleveethewhere* )see isv. istoD ,METHODS RECAP : Emon een( ,Emoticon /emcI ( )1) Barrier2) monitoringAge continuous→Fft I! Barrier ( )Discrete monitoringvcon )(- AmericanEmoticon→3) Barrierµ →, (\\ )monitoringDiscretelook bookmaimThe lowerof continuous thethan discretemonitoring monitoringvalue beshould value inn.rs a.For European but withlofhniceboth log schemes fineoption anda messmoney aare-, ,transformationlog barriertheBarrier the log thebetter hosoption sinceisprice messmoney. .that !from timeden ends (E)Zak!log numerically) notS re foodD t=-- followingIstheNow want howstudy beto therewrittenPIDE incan caseswe :finitePossibilities Levy1) activity3 : finiteinfinite withLevy2) activity variationsinfiniteinfinite with3) Levy activity variationsIm I:]( Otto"whatparticular Hftexplicitlyto becomesf- letwant oldIttest ) ))iswe know s- a--IR)( alternative log price case-
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