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= Question 4 Consider a single step binomial market model in which there are three assets, cash (or bank account with zero interest rate)

= Question 4 Consider a single step binomial market model in which there are three assets, cash (or bank account with zero interest rate) Bo B = 1, stock S with So 6 and S = {9,3}, and stock G with Go = 7 and G = {8,5}. The real world probability of an up move is 1/3. = Find an arbitrage portfolio.

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