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calculate the price of a call and a put option with exercise price 10 and two periods on a stock whose initial price is 13.
calculate the price of a call and a put option with exercise price 10 and two periods on a stock whose initial price is 13. the stock can go up by 1.1(u=1.1) or down by 0.8(d=0.8), the risk free rate is 0.2% per period.
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