Question: Problem 1. [1 point] Consider the single period binomial model. Let CO denote the price of a European Contingent Claim X at time 0, and

Problem 1. [1 point] Consider the single period binomial model. Let CO denote the price of a European Contingent Claim X at time 0, and q?\" be the replicating strategy for X. If the manufacturing cost ofthe replicating strategy 95* is greater than 00, i.e., V0(q5*) > 00, show that there exists an arbitrage opportunity

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