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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.

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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. This model will violate the no-arbitrage assumption (b) Suppose that 0 0, and either X1(H) > 0 or Xi(T) > 0 Xo 0. Make sure to indicate which list of conditions you are attempting to satisfy. 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 (b) Suppose that 0 0, and either X1(H) > 0 or Xi(T) > 0 Xo 0. Make sure to indicate which list of conditions you are attempting to satisfy

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