Show transcribed image text . (4 points) Consider the one-period binomial tree model, where u and d are chosen such that u > d>0 is a necessary condition for no-arbitrage opportunities. In another word, show that you can construct arbitrage portfolios if this condition is violated b) Given u>1>d, show that there exists a probability 0
. (4 points) Consider the one-period binomial tree model, where u and d are chosen such that u > d>0 is a necessary condition for no-arbitrage opportunities. In another word, show that you can construct arbitrage portfolios if this condition is violated b) Given u>1>d, show that there exists a probability 0
