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(b) Construct a binominal option pricing model to calculate the value of a European style call option with the following information; Exercise price RM32 Volatility

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(b) Construct a binominal option pricing model to calculate the value of a European style call option with the following information; Exercise price RM32 Volatility 15% Probability (up and down) 50% Risk free rate 6% per annum Price movement 3 times (13 marks)

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