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down stock follows the one- penod binomial model. The current price is 45o, it will get multiplied by u = 114 ord i6. The probability

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down stock follows the one- penod binomial model. The current price is 45o, it will get multiplied by u = 114 ord i6. The probability of J40%. The is tools and the probability of going a. Draw the binomial tree showing the stock price Payoffs for a call option with bus too stike price $45 ) bo What is the replicating portfollo' for the call options l'e. What an s and B? c. What is the value of the call option? suppose that the market price is deable calculation and ou trust the model: Is there an arbitage opportunity, Scplaine priecoties of your down stock follows the one- penod binomial model. The current price is 45o, it will get multiplied by u = 114 ord i6. The probability of J40%. The is tools and the probability of going a. Draw the binomial tree showing the stock price Payoffs for a call option with bus too stike price $45 ) bo What is the replicating portfollo' for the call options l'e. What an s and B? c. What is the value of the call option? suppose that the market price is deable calculation and ou trust the model: Is there an arbitage opportunity, Scplaine priecoties of your

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