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Consider the following binomial tree. The interest rate is 0.2 % per month 6. 1 Months Later Now 2 Months Later u'So 133.10 uSo 121.00

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Consider the following binomial tree. The interest rate is 0.2 % per month 6. 1 Months Later Now 2 Months Later u'So 133.10 uSo 121.00 udSo 110.00 So 110.00 dSo100.00 d'S-90.91 (1) Use the tree to price a put option maturing in 1 monthwith strike price equal to 108. (2) If I sell one contract of this put option, what is my maximum profit and maximum loss? (3) Use the tree to price a call option maturing in 2 months with strike price equal to 103

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