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12. A digital option is an option that pays a dollar if a certain event occurs, nothing oth- erwise. Use the binomial tree to find

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12. A digital option is an option that pays a dollar if a certain event occurs, nothing oth- erwise. Use the binomial tree to find the value of a digital option that pays $100 if the stock is at $120 in the final period. 12. A digital option is an option that pays a dollar if a certain event occurs, nothing oth- erwise. Use the binomial tree to find the value of a digital option that pays $100 if the stock is at $120 in the final period

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