Different for investors
Assume that the lending rate r1 and the borrowing rate r2 are different for investors so that r1>r2. Show that the no arbitrage forward price F(0,T) satisfies
S(0)e^r1*T <= F(0,T) <= S(0)e^r2*T
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Let A be the set of differentible functions. Illustrate a relation R by f R g if f'(x) = g'(x). Prove this is equivalence relation. Find/explain x2].
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