Question: Completeness Revisited a. Using the binomial tree, if we price an American call or put option, is the market complete? b. Using the binomial tree,

Completeness Revisited

a. Using the binomial tree, if we price an American call or put option, is the market complete?

b. Using the binomial tree, if we price a European UAO call option, is the market complete?

c. Describe market completeness in mathematical terms using the rank of the A matrix.

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