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2. Suppose that you can borrow money at 22% but invest at only 18%. Using a one - perio binomial tree with u = 1.30
2. Suppose that you can borrow money at 22% but invest at only 18%. Using a one - perio binomial tree with u = 1.30 and d = 0.90, compute the prices of a call and a put both wit strike price X = 75 on a stock with So = 75. How would your answer change if th borrowing and lending rates were equal
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