... The Strong Markov PropertyThe random walk process fMkg1k=0is a Markov process, i.e.,IE random variable depending only onMk+1;Mk+2;:::jFk=IEsame random variablejMk :In discrete ... bek=1MkZk;k=0;::: ;n:As before the portfolio process isfkgn,1k=0. The self-financing value process (wealth process) consists ofX0, the non-random initial wealth, and Xk+1=kSk+1+1+rkXk, ... 1:Then the following processes are martingales underfIP:1MkSknk=0 and 1MkXknk=0; and the following processes are martingales under IP:fkSkgnk=0 and fkXkgnk=0:We...