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A stock's present value is 60. The exercise price is 60. The risk-free interest rate is 3% per year. Annual volatility is 40% and time

A stock's present value is 60. The exercise price is 60. The risk-free interest rate is 3% per year. Annual volatility is 40% and time to maturity is two years. Draw a binomial tree using two steps (2 years) and calculate the value of a call option and a put option using the binomial model.

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