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1.[10 points] In a two-step CRR model, consider a European put option with strike price K = 65 and the following incomplete pricing tree: 14.6

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1.[10 points] In a two-step CRR model, consider a European put option with strike price K = 65 and the following incomplete pricing tree: 14.6 35.6 (a) (5pts) Compute the interest rate r, the risk-neutral probability q and the price FE. (b) (5pts) Determine and draw the price process S.1

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