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a. Consider a four period binomial model in which the stock currently trades at a price of Kshs. 30. The stock price can go up

a. Consider a four period binomial model in which the stock currently trades at a price of Kshs. 30. The stock price can go up 12% or down 10% each period. The risk free rate is 5% per period and the 12 Month strike price in 12 month is Kshs. 35. Calculate the price of the American call option expiring in 12 Month. Use a binomial tree.

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