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a. Consider a 12 month three step binomial in which a currency currently trades at a price of $70. The currency price can go up

a. Consider a 12 month three step binomial in which a currency currently trades at a price of $70. The currency price can go up 15% or down 9% each period. The riskfree rate is 8%. Calculate the price of a European call option expiring in three periods with an exercise price of $65. Also calculate the price of a European put option expiring in two periods with a strike price of $75

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