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2. Let So and Si be the prices of a stock at t = 0. 1 in the one-period binomial model. Assume the no-arbitrage condition 0 〈 d 〈 1 + r < u, and assume P(H)-p. We define θ-up + d(1-p)-1. Show that the expected value at t 0 of is 1S 1+θ Si 1+θ Eo =So-

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