Question: [ 8 ] Consider a 1 - period binomial model with T = 1 and assume the risk free interest rate r = 0 .

[8] Consider a 1-period binomial model with T=1 and assume the risk free interest rate r=0. That is, the stock (currently priced at S0=10) can got up to STu=uS0 with probability pu or down to STd=dS0 with probability 1-pu where puin(0,1). We know that )=BT=(1
[8] Consider a 1-period binomial model with T=1 and assume the

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