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5.- Suppose we have a 8 month European call option with strike price $100. Suppose So = $100 and in two time steps of 4

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5.- Suppose we have a 8 month European call option with strike price $100. Suppose So = $100 and in two time steps of 4 months the stock can go up or down by 5%. (a) Suppose r = 0%. What is the price of the call? (b) Suppose r = 10% and K = 103. What is the price of the call

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