Question: 3. True or False with a brief justification or counter-example: (a) Let S be the price process in the binomial model, and define M, maximum

3. True or False with a brief justification or counter-example: (a) Let S be the price process in the binomial model, and define M, maximum price of the asset Sm till the moment t = n. Then, M, is Markovian. (b) The bidimensional process (S, M, := maxx=0.... Sk), as defined above is a bidimensional Marko- vian process

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