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1. You are working with a 1-level binomial tree model assuming an interest rate of r > 0. (a) Use the replicating portfolio technique to

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1. You are working with a 1-level binomial tree model assuming an interest rate of r > 0. (a) Use the replicating portfolio technique to obtain a formula for the fair price of a European put option Pt(St, E, T) at t = 0. As usual, Sa

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