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1. The volatility (sigma) of a stock is 52% per annum. We will model stock-price movements using a Binomial tree, where each branch of the

1. The volatility (sigma) of a stock is 52% per annum. We will model stock-price movements using a Binomial tree, where each branch of the tree has a step length (delta t) of 5 months. Calculate the p...

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