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6. A 1-year European call with strike price 40 has premium 4.00. The underlying stock pays dividends at a continuous rate at 1%. The continuous

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6. A 1-year European call with strike price 40 has premium 4.00. The underlying stock pays dividends at a continuous rate at 1%. The continuous compounded risk-free rate is 5%. The option is modeled with the following 1-period binomial tree: so Yo

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