5 Incompleteness and Arbitrage (20 points) In both of the following trinomial models, you may assume pupm, and 1pupm are all strictly positive. (a) (10 points) Consider the following trinomial model: Find the price at time t=0 of a European call option on the stock that expires at t=1 and has strike price 1.1. That is, an asset with value c(1)=max{S(1)1.1,0}. Note: the model is incomplete, but you should still be able to get a unique price. (b) (10 points) Find all values x for which the following trinomial model has no arbitrage