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Compute the price of European and American calls and puts. Suppose that S = $50, K = $45, sigma = 0.30, r = 0.08, and

Compute the price of European and American calls and puts. Suppose that S = $50, K = $45, sigma = 0.30, r = 0.08, and t = 1. The stock will pay a $4 dividend in exactly 3 months. Compute the price of European and American call options using a four-step binomial tree

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