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1.2. In this problem, suppose we are in a version of the one-period binomial model where the symbols used have the meanings given in class.

1.2. In this problem, suppose we are in a version of the one-period binomial model where the symbols used have the meanings given in class. This model will violate the no-arbitrage assumption (a) Suppose that 0 0 or X (T) > 0 Xo 0 or X (T) > 0 Xo

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