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For part d, How to find the beta2? Please show part d detail. Problem 2. [1 point] Consider a Binomial Model with T=2,r=1/3,S0=2,d=5/4,u=3/2, and p=3/5.

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For part d, How to find the beta2?

Please show part d detail.

Problem 2. [1 point] Consider a Binomial Model with T=2,r=1/3,S0=2,d=5/4,u=3/2, and p=3/5. (a) Compute B=(B0,B1,B2) (b) Compute the four possible values of (S0,S1,S2) and the probability of each outcome. (c) Draw a tree diagram representing the possible outcomes of (S0,S1,S2) and the respective probability associated with each branch. (d) Find the self-financing trading strategy such that 1=(1,2) and 2=(2,2), i.e., 2u= (2,2u) and 2d=(2,2d) (e) For the strategy named in 2(d), compute all possible values of (V0(),V1(),V2()) and the probability of each

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