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3. A Look-back option. In a three-periods multiplicative binomial market model where: So = 4, u = 2, d = 0.5, e = 1.25, consider

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3. A Look-back option. In a three-periods multiplicative binomial market model where: So = 4, u = 2, d = 0.5, e" = 1.25, consider a look-back option with payoff X3 = maxo<>

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