7.1. Suppose that you have a stopping time r in the 4-period binomial model such that following is true about 7: |T(HHTT) = 00; T(TTHH)= 2; T(HTHT) =2 For cach other state, give all of the possible values that 7 could have. You do not nec list cach state indivudually; for example it is possible to describe what happens in all sta

MATLAB: An Introduction with Applications
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7.1. Suppose that you have a stopping time 7 in the 4-period binomial model such that the
following is true about T:
|r(HHTT)-
T(HHTT) = 0; 7(TTHH)=2; T(HTHT)=2
%3D
For cach other state, give all of the possible values that 7 could have. You do not need to
list cach state indivudually; for example it is possible to describe what happens in all states
of the form (H, H, w3,wA) in one go.
Transcribed Image Text:7.1. Suppose that you have a stopping time 7 in the 4-period binomial model such that the following is true about T: |r(HHTT)- T(HHTT) = 0; 7(TTHH)=2; T(HTHT)=2 %3D For cach other state, give all of the possible values that 7 could have. You do not need to list cach state indivudually; for example it is possible to describe what happens in all states of the form (H, H, w3,wA) in one go.
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