Question: 2. Answer the following questions. 2.1. (4) What do we mean by replication pricing? 2.2. (4) What do we mean by risk-neutral valuation? 2.3. (4)

2. Answer the following questions. 2.1. (4) What do we mean by "replication pricing"? 2.2. (4) What do we mean by "risk-neutral valuation"? 2.3. (4) Why do we require a stock-price binomial tree or an interest-rate tree to price the stock or zero-coupon bonds correctly

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