Question: 2. ( Exercise 6.12 adapted ) Let parameters be S(0) = 100, U = 0.1, D = -0.1, R = 0.05 (a Find Ex S(2)

2. ( Exercise 6.12 adapted ) Let parameters be
2. ( Exercise 6.12 adapted ) Let parameters be S(0) = 100, U = 0.1, D = -0.1, R = 0.05 (a Find Ex S(2) |P1 (b) Find S(1) and confirm it is the same random variable in (a) (c Find Ex S(3) |P2 (d) Find S(2) and confirm it is the same random variable in (c)

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