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2 (10+ 20 = 30 points) Consider the following two-period binomial model with short rate 0.05. t=0 t=1 t = 2 576 480 400 360

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2 (10+ 20 = 30 points) Consider the following two-period binomial model with short rate 0.05. t=0 t=1 t = 2 576 480 400 360 300 225 1. Find the price at time 0 of the American call option with strike price 387. 2. Find the price at time 0 of the American put option with strike price 351

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