Question: please be clear 3. Consider the following one-period model for the asset S, where the interest rate r = 0: S(1) 9U 50 S(0) =

please be clear

3. Consider the following one-period model for the asset S, where the interest rate r = 0: S(1) 9U 50 S(0) = 20 IL 20 Show that there does not exist a risk-neutral measure (qu.9L) and find an arbitrage opportunity. 3. Consider the following one-period model for the asset S, where the interest rate r = 0: S(1) 9U 50 S(0) = 20 IL 20 Show that there does not exist a risk-neutral measure (qu.9L) and find an arbitrage opportunity

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