Solution

ID: past-exam-of-the-probability-statistics-and-options-ii-course-of-the-university-of-oxford/2008/e/3/d/solution

Let the radius be . One inclusion follows from (a). For the reverse, if , set for . Then and , so every closed-ball point is in the closure of the open ball. Hence
The positive-radius convention matters: if radius zero is allowed, the open ball is empty whereas the closed ball is , so the asserted equality fails at that degenerate radius.

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