1. Consider a stock whose price has the volatility and drift , and at time, is given by the geometric Brownian motion: S(t) = S(0) exp{(po)t + oW(t)} where W(t) is a standard Brownian motion. Consider a Binomial model with N periods, with each period of length AT = 7 units of time, and with U = d = 1 + + 1 + - . Show that the price of the stock on the binomial tree at period N approached the random variable S(T) as N .