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A Stock is currently trading at 50$ which is expected to go up each year by 25% over the next 2 years and the Risk

A Stock is currently trading at 50$ which is expected to go up each year by 25% over the next 2 years and the Risk Free rate is 7% p.a. Using the Binomial Option Pricing Model, Calculate: QUESTIONS: (10MARKS)

(a) 2 Year European Call Premium Strike 45$.

(b) 2 Year European Call Premium Strike 45$.

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