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I think one should start with the basic Asset Pricing papers such as: Mehra and Prescott 1985; Campbell and Cochrane 1999; Bansal and Yaron 2004; Most of the models are then variations of these in one way or another. Some other more complex but potentially interesting are on intermediation. Some authors provide codes. Take a look for instance ...


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A digital call option (cash-or-nothing) can be replicated with two call options with different maturity. When we make the delta infinitely small and assume we have arbitrary strike prices. We get:



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