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Consider a one period binomial model for a stock with an initial price of 5 0 $ , and the stock price can go up
Consider a one period binomial model for a stock with an initial price of $ and the stock price can go up or down by in one period. The rise free simple interest rate is per period. A call option has a strike price of and matures in one period. If the call is traded at how would you arbitrage?
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