Question: Consider a one-period binomial tree model with d = u = 4, r = 4, 4. So 10. Is there an arbitrage opportunity in this

 Consider a one-period binomial tree model with d = u =

Consider a one-period binomial tree model with d = u = 4, r = 4, 4. So 10. Is there an arbitrage opportunity in this model? Can you exhibit such a strategy

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