Question: Consider a 3-period binomial model with u = 2, d = 1/2, r = 1/4, S0 = 4. (1) Let =the first time the stock

Consider a 3-period binomial model with u = 2, d = 1/2, r = 1/4, S0 = 4. (1) Let =the first time the stock price above 7=inf{n 0 : Sn 7}. Is a stopping time? (2) Let =the last time the stock price above 7=sup{n 0 : Sn 7}. Is a stopping time?

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