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17. (10 points) A stock price is currently $25. It is known that at the end of two months it will be either $23 or

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17. (10 points) A stock price is currently $25. It is known that at the end of two months it will be either \$23 or $27. The risk-free interest rate is 10% per annum with continuous compounding. Suppose ST is the stock price at the end of two months. If we use the one-step binomial tree to compute the price of a derivative that pays off ST2 at maturity, what is the price we obtain

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