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Binomial Option Pricing Model S = Asset Price = 88 X = Exercise Price= 90 u = The factor by which the price rises =.08

Binomial Option Pricing Model

S = Asset Price = 88

X = Exercise Price= 90

u = The factor by which the price rises =.08

d = The factor by which the price falls = -.06

r = Rate = .0275

1) What is the price of a call option using the one period model and information given above? Show all work.

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