1. (a) Consider the following filtration, where the interest rate r=0 : S(t) is the asset price at time t in dollars. (i) In this model, replicate the European call option with strike K= $101 over the two periods and so find the fair price of the option. (ii) Find all the conditional probabilities for this filtration and the corresponding probability on ={ 1 , 2 , 3 , 4 } . Confirm that E Q [X] is the fair price