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European put option- a right to sell at the given strike price #1. For a one-period binomial model, we set So 100, u-1.1, d 0.9,

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European put option- a right to sell at the given strike price #1. For a one-period binomial model, we set So 100, u-1.1, d 0.9, and R 0.05. (a) Draw the tree diagram for the stock price dynamics. (b) Find the martingale probability. (c) Price the European put option with strike price 105 at time t = 1. (d) Determine the hedging portfolio

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