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ABC Corporation is currently trading at $40, with volatility =40%, r=3%, and no dividends. Assume that the ABC stock price can be modeled according to
ABC Corporation is currently trading at $40, with volatility =40%, r=3%, and no dividends. Assume that the ABC stock price can be modeled according to a three period binomial approach with T=9 months and n=3, so that the stock price moves every 3 months. Build out the binomial tree for ABC in Excel.
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