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1. Using the information in this module, please compute the two-step binomial model price of a European Call Option (BY HAND) with the following characteristics:

1. Using the information in this module, please compute the two-step binomial model price of a European Call Option (BY HAND) with the following characteristics:

S = 50 K = 50 Sigma = 30% r = 1.00% T = 6 months D = 0

Please draw out the "tree" used in your calculation.

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