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8. Consider a pay later option on a stock with current price is $10, with volatility 10%, the risk free rate is 5%, the strike

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8. Consider a pay later option on a stock with current price is $10, with volatility 10%, the risk free rate is 5%, the strike price is $12, and maturity is 14 months. Find the premium P using a binomial lattice with a time step corresponding to one month

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