Solution

ID: past-exam-of-the-mathematics-course-of-the-university-of-cambridge/2022/iii/paper-211/5/a/solution

A predictable strategy is self-financing when its wealth satisfies
It is admissible when its wealth obeys the stipulated lower bound, here taken to be nonnegative. A strictly positive Itô process is a martingale deflator when every deflated asset price is a local martingale.

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