Problem 2. For the market of Problem 1 find a self-financing strategy that re (100, 90, 80, 70)'(from top to bottom final state). Problem 1. Consider a two-period market S with a bond B and an asset S. The interest rate is assumed to be r = 0 and Bo = 1. The evolution of the asset S is given in the following diagram. Calculate a risk-neutral probability for S (if any). 90 85 80 80 80 78 75 Problem 2. For the market of Problem 1 find a self-financing strategy that re (100, 90, 80, 70)'(from top to bottom final state). Problem 2. For the market of Problem 1 find a self-financing strategy that re (100, 90, 80, 70)'(from top to bottom final state). Problem 1. Consider a two-period market S with a bond B and an asset S. The interest rate is assumed to be r = 0 and Bo = 1. The evolution of the asset S is given in the following diagram. Calculate a risk-neutral probability for S (if any). 90 85 80 80 80 78 75 Problem 2. For the market of Problem 1 find a self-financing strategy that re (100, 90, 80, 70)'(from top to bottom final state)