Question: b) Set up a general one-period binomial model (i.e. specify its compo- nents); this includes specifying conditions on its parameters which guarantee that the model

b) Set up a general one-period binomial model (i.e. specify its

b) Set up a general one-period binomial model (i.e. specify its compo- nents); this includes specifying conditions on its parameters which guarantee that the model is free-of-arbitrage

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