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7. A 6-month European call option is modeled with the following l-period binomial tree: 65 55 - (i) The strike price is 60. (ii) The

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7. A 6-month European call option is modeled with the following l-period binomial tree: 65 55 - (i) The strike price is 60. (ii) The continuously compounded risk-free rate is 5.5%. Determine the change in the premium for the call option if the continuous dividend rate increases from 0 to 3%

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