Assume that the change of numeraire formula does not hold at time t, and we have XY (t) Consider a..

Assume that the change of
numeraire formula does not hold at time t, and we have XY (t) < xz(t)="" ·="" zy="" (t).="" show="" how="" to="" make="" a="" risk-free="" profit="" by="" trading="" in="" assets="" x,="" y="" ,="" and="" z.="">

Consider a dividend paying stock S in a
continuous dividend payment model given by (1.32). Assume that the price the
asset representing the stock plus the dividends Se with respect to the money
market M follows geometric Brownian motion