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Consider three-period binomial tree model for the stock price S with the following pararm eters: So-$100, 1.2, d-0.9. Find the no-arbitrage present value of the

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Consider three-period binomial tree model for the stock price S with the following pararm eters: So-$100, 1.2, d-0.9. Find the no-arbitrage present value of the (European) butterfly option with the following payoff function: S [100, 140, s [120, 140, S 1100, 120. A(S) 140-s, S-100, Assume that r 0.1

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