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Consider a three-step binomial tree. What is the price of the call option if: the stock price is S = $210.00, a $4.20 dividend is
Consider a three-step binomial tree. What is the price of the call option if: the stock price is S = $210.00, a $4.20 dividend is paid in 8 month(s), the risk-free rate is r = 2.70%, the strike price is K = 202.00, the maturity is T = 33 months and the tree parameters are u = 1.4115 and d = 0.7722? (keep 4 decimals in your calculations).
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