| 2 Show that the price of a claim obtained by backwards induction on the binomial tree is precisely the value obtained by calculating the discounted expected value of the claim with respect to the path probabilities introduced in $2.1. | 2 Show that the price of a claim obtained by backwards induction on the binomial tree is precisely the value obtained by calculating the discounted expected value of the claim with respect to the path probabilities introduced in $2.1