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1. Consider a binomial model with U 10%, R = 5%, and D = 0%. Suppose that S(0) = 100 and that N 2. Find

1. Consider a binomial model with U 10%, R = 5%, and D = 0%. Suppose that S(0) = 100 and that N 2. Find the price at t 0 for a European call option with X 108. 2. Use put-call parity to find the price of a European put option with X = 108

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