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c) Construct a two-step binomial tree to find the value of a European call option on an index that currently stands at 696 , and

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c) Construct a two-step binomial tree to find the value of a European call option on an index that currently stands at 696 , and has a volatility of 30% per annum. The risk free rate of interest is 7% per annum. The call option has an exercise price of 700 and term of 2 months

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