In class we derived the no arbitrage condition 0 < d < 1 + r < u assuming that time in the Binomial model is in years and there is no compounding within a given year. In this exercise you are asked to derive (not just state) a similar no arbitrage condition for a Binomial model where the time interval is given by t (e.g., days, months, etc.) and continuous compounding within that period of time.