Construct two portfolios show they have the same

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Construct two portfolios Show they have the same payoffs Conclude they must cost the same Portfolio I : Buy a share of stock today for a price of S 0 and simultaneously borrow an amount of PV(X). How much would your portfolio be worth at the end of T years? Assume that the stock does not pay a dividend. Position 0 T Buy Stock -S 0 S T Borrow PV(X) -X Portfolio I PV(X) - S 0 S T - X
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