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Consider a 2-period binomial model. the annual interest rate is 9%. the initial stock price is $50. In each period the stock price either goes

Consider a 2-period binomial model. the annual interest rate is 9%. the initial stock price is $50. In each period the stock price either goes up by 15% or down by 10%.

a. Price a European call option on the stock with exercise price $60

b. Price a European put option on the stock with exercise price $60

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