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A stock has a current share price of $100 and is set to pay a per share dividend of $20 just before T=2 -U=1.221 and

A stock has a current share price of $100 and is set to pay a per share dividend of $20 just before T=2 -U=1.221 and D=0.819 -The risk-free rate is 10%. -All options expire in two years. -All options are at-the-money, i.e. K=S(0) -Use a two-step binomial model.

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