Question: 1. 10 points (a) Using the Binomial Market model, write the seller's strategy and the buyer's strategy. (b) Write the Dual problems in both strategies

1. 10 points (a) Using the Binomial Market model, write the

1. 10 points (a) Using the Binomial Market model, write the seller's strategy and the buyer's strategy. (b) Write the Dual problems in both strategies and find the optimal solution in both cases. (c) Under the following market values i=1%,u=1.035,d=0.975, price of risky asset P0=1, probability of the upward movement pu=0.4, with an initial wealth W0=1000 solve the problem of the optimal portfolio construetion with u(x)=x. Use the Martingale Approach

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