Consider a single-period binomial model with So = 100, r = 0.1, S((up)) = 110, S((down)) = 90, T = 1. (a) Show that in this model it is possible to set up an arbitrage portfolio over (0,7). Show the payoffs at 7 and explain why it is an arbitrage portfolio. (b) If r = 0.05 such arbitrage opportunities are not possible. Determine the values U, D in the up and down states respectively, and the t = 0 price V, for a put option with strike 105. (c) If r = 0.05, determine the values U, D in the up and down states respectively, and the t = 0 price V. for a stock-or-nothing option with strike 105