Consider a market with a risk-free asset such that A(0) = 100, A(1) = 110, A(2) = 121 dollars and a risky asset, the price of which can follow three possible scenarios

is there an arbitrage strategy if short selling of stock is allowed, but transaction costs of 5% of the transaction volume apply whenever stock is traded?

Scenario S(0) S(1) S(2) 100 120 144 100 120 96 100 90 96 e2