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Consider a market with one risk-free asset and one risky asset that follows the binomial tree model. Suppose that whenever stock goes up, you can

image text in transcribed Consider a market with one risk-free asset and one risky asset that follows the binomial tree model. Suppose that whenever stock goes up, you can predict that it will go down at the next step. Find a self-financing (but not necessarily predictable) strategy with V(0)=0,V(1)0 and 0=V(2)0

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