Let T = 2, d = 1 and N = {a,b,c,d}. P = (a + 8 + c + 8) and 3D w (x(0), X.(w)) (x(w), X(w)) (x9,x:(0) HW) (1,12) (1,18) (1,36) 6 b (1,12) (1,18) (1,9) (1,12) (1,9) (1.12) d (1,12) (1,9) (1,8) 4 1 8 Assume that F is the natural filtration of X given by F* = {0,1}, FX = {0,1 {a,b}, {c,d}}, and F2 = o({X,X4,X>})= 2.4 1 Show that the market is complete. 2 Find the unique no-arbitrage price of H. 3 Construct a replicating strategy for H. Remember to show all your calculations, otherwise marks will be deducted Let T = 2, d = 1 and N = {a,b,c,d}. P = (a + 8 + c + 8) and 3D w (x(0), X.(w)) (x(w), X(w)) (x9,x:(0) HW) (1,12) (1,18) (1,36) 6 b (1,12) (1,18) (1,9) (1,12) (1,9) (1.12) d (1,12) (1,9) (1,8) 4 1 8 Assume that F is the natural filtration of X given by F* = {0,1}, FX = {0,1 {a,b}, {c,d}}, and F2 = o({X,X4,X>})= 2.4 1 Show that the market is complete. 2 Find the unique no-arbitrage price of H. 3 Construct a replicating strategy for H. Remember to show all your calculations, otherwise marks will be deducted