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Exercise 2. Consider a one step binomial model. The initial stock price is $80. There is a 60% chance the stock price will rise to

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Exercise 2. Consider a one step binomial model. The initial stock price is $80. There is a 60% chance the stock price will rise to $90 and a 40% chance it will fall to $75. The risk free bond gets 5%. . Price a call option with strike of $80. Price a put option with strike of $80. Does put-call parity hold

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