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Consider an arbitrage-free N-period binomial model with parameters u,d,r and S0. (a) Let V(m) denote a derivative security that pays, at time N, the amount

image text in transcribed Consider an arbitrage-free N-period binomial model with parameters u,d,r and S0. (a) Let V(m) denote a derivative security that pays, at time N, the amount VN(m)=(ln(Sm1Sm))2 Where Sm is the the share price of the stock at time m,0

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