Question: = 1 Consider a one-period binomial tree model with d Cu = 4, = 4, 4' So = 10. Is there an arbitrage opportunity in

 = 1 Consider a one-period binomial tree model with d Cu

= 1 Consider a one-period binomial tree model with d Cu = 4, = 4, 4' So = 10. Is there an arbitrage opportunity in this model? Can you exhibit such a strategy

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