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4. Price a call option using the one-period binomial model assuming the following data: So 129, K=80, U=1.5, D=0.5 and R=1.1. What does the
4. Price a call option using the one-period binomial model assuming the following data: So 129, K=80, U=1.5, D=0.5 and R=1.1. What does the replicating portfolio consist of? 5. Use the data from problem 5, compute the put price and validate the put-call parity.
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Public Finance
Authors: Harvey Rosen, Ted Gayer
10th edition
9781259716874, 78021685, 1259716872, 978-0078021688
