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Need answers to the following questions. ( attached) Market completeness a. How many fundamental securities are there in the market? (Hint: a derivative, such as

Need answers to the following questions. ( attached)

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Market completeness a. How many fundamental securities are there in the market? (Hint: a derivative, such as an option, is NOT a fundamental security. Derivatives are derived from fundamental securities). b. At any given node, how many states of the world are there in the binomial tree? c. Define market completeness using parts a and b. d. Suppose the underlying stock price jumped. By jumps, we mean that it moves by a factor larger than u (or smaller than d) from 1 node to the next. Would that market still be complete? Why or why not

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