12.15. Calculate u, d, and p when a binomial tree is constructed to value an option on...
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12.15. Calculate u,
d, and p when a binomial tree is constructed to value an option on a foreign currency. The tree step size is one month, the domestic interest rate is 5% per annum, the foreign interest rate is 8% per annum, and the volatility is 12% per annum.
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