2. Proposition 2.10. Assume that the general binomial model is free of arbitrage. Then, it is also complete. Please provide proof that all claims from any risky assets can be replicated using basic stocks and bonds. Proposition 2.24. Show the repetitive formula to find recursive values of Vt(k) at node ( t, k) which basically shows the value at time t with k up moves and Tk down moves, regardless of order. Tips: For Proposition 2.10, your process is to consider risky asset X (or arbitrage claim X ) that has a contract function (ST) (with up and down moves) and show that you could create a replicating portfolio h(x,y) that mimics the expected value of risky asset X in both up and down states. And then, show that it is possible to solve the equation system for x and y values. For Proposition 2.24, you just write the formula either from memory or from adopting from above