Positive pro?t in the future

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Suppose the prices of the assets 81 and 32 are given by 83": = Sj,08(#j-a2/2)t+ath for j = 1,2. Suppose that #1 > "2. Construct a portfolio consisting of positions in $1 and 82 such that the initial investment is 0, but it will always give a positive pro?t in the future.

Reference no: EM133061772

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