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Consider the following 2-period binomial model, in which the annual interest rate is 9% and in which the stock price goes up by 15% per
Consider the following 2-period binomial model, in which the annual interest rate is 9% and in which the stock price goes up by 15% per period or down by 10% : a. Price a European call on the stock with exercise price 60 . b. Price a European put on the stock with exercise price 60 . c. Price an American call on the stock with exercise price 60 . d. Price an American put on the stock with exercise price 60 . Consider the following 2-period binomial model, in which the annual interest rate is 9% and in which the stock price goes up by 15% per period or down by 10% : a. Price a European call on the stock with exercise price 60 . b. Price a European put on the stock with exercise price 60 . c. Price an American call on the stock with exercise price 60 . d. Price an American put on the stock with exercise price 60
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