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32. Using the single period binomial tree, calculate the value today of a one year call option on a stock that has an exercise and

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32. Using the single period binomial tree, calculate the value today of a one year call option on a stock that has an exercise and current price of $50. Assume that if the market was to increase, the stock price would increase to $60 and the risk free rate is 5%. a. 6 b. 6.25 c. 6.3 d. 6.50 33. Use the information in question 32 to calculate the value of a put option. a. 2.92 b. 3.07 c.d.3.252.78 d. 2.78 34. Using the two period binomial tree, calculate the value today of a two year call option on a stock that has an exercise and current price of $60. Assume that if the market was to increase, the stock price would increase to $75 and the risk free rate is 5% a. 8.25 b. 9.25 c. 10.25

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