Question: Problem 1:(30 points) Mark T (true) or F (false). (T, F) A binomial tree model is complete. ( T,F)A conditional expectation of a random variable

Problem 1:(30 points) Mark T (true) or F (false). (T, F)

Problem 1:(30 points) Mark T (true) or F (false). (T, F) A binomial tree model is complete. ( T,F)A conditional expectation of a random variable Xt with respect to a -algebra G is a deterministic function. (T, F) The martingale probability (qu,qd) in a binomial tree model does not depend on the original probability (pu,pd). (T, F) The Markov property tells that the future is independent of the past conditional on the current state. (T, F) A Brownian motion moves infinite distance in a finite time

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