1- Market completeness a- How many fundamental securities are there in the market? (Hint: a derivative, such as an optio

[answerhappygod]

1- Market completeness
a- How many fundamental securities are there in the market?
(Hint: a derivative, such as an option, is NOT a fundamental
security. Derivatives are derived from fundamental securities).
b- At any given node, how many states of the world are there in
the binomial tree?
c- Define market completeness using parts a and b.
d- Suppose the underlying stock price jumped. By jumps, we mean
that it moves by a factor larger than u (or smaller than d) from 1
node to the next. Would that market still be complete? Why or why
not?