Question: In a two period binomial market model with parameters S ( 0 ) = 1 ; u = 2 ; d = 1 2 ;

In a two period binomial market model with parameters S(0)=1;u=2;d=
12;r=0,u and d are given for one period, consider a put option with -floating
strike" and payoff
x=(M-S(T))+,where M=S(0)+S(1)+S(2)3
Determine the price process and the self financing strategy.
In a two period binomial market model with parameters S(0)=1;u=2;d= 12;r=0,u

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