Fischer, Tom (contributor) - 2004
-measurable payoff X at T can be repli-
cated until T. This is the usual definition of the completeness of a securities
market model … = θt, since X = 〈θt,ST〉
could be chosen. For no-arbitrage reasons, one must have piFs (θt) = 〈ϕs,Ss〉
for s ∈ T and … replicated until t.
(ii) Due to (i), the portfolio θt = X/S0t ·e0 can for any Ft-measurable payoff
X be replicated until t …