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A European call has strike $22 and expires in three months. The underlying asset is currently worth $21, the yearly volatility is 45% and the

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A European call has strike $22 and expires in three months. The underlying asset is currently worth $21, the yearly volatility is 45% and the continuously compounding interest rate is 0.3% per month. Convert the problem into a two-step binomial model and calculate the premium of the call

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