(i) Under the two-period binomial model, write the stock price Suu after two up movements, the stock price Sud after one up and one down movement and...

(i) Under the two-period binomial model, write the stock price Suu after two up movements, the stock price Sud after one up and one down movement and the stock price Sdd after two down movements in terms of u, d and the initial stock price S. (ii) Is it true that with the same q of the one-period model Su = 1 1 + r (qSuu + (1 − q)Sud), Sd = 1 1 + r (qSud + (1 − q)Sdd) ? Explain your answer.