Question: . Consider a three step Binomial pricing model with S = 80, u = 2, d = 0.5, r = p = random variables

. Consider a three step Binomial pricing model with So = 80,u = 2, d = 0.5,8 = aipat and y are random variables defined as fo

. Consider a three step Binomial pricing model with S = 80, u = 2, d = 0.5, r = p = random variables defined as follows: T: T(HHH) = 0,t(HHT) = ,t(HTH) = 2,t(HTT) = 2,t(TTT) = 1,t(TTH) = 1,t(THT) = 1, t(THH)= 1. T and y are y:y(HHH) = ,y(HHT) = , y(HTH) = 2,y(HTT) = 2,y(TTT) = 1, y(TTH) = 1, y(THT) = 2, Y(THH) = 2 Prove or disprove: a) T is a stopping time. b) y is a stopping time

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