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Find the price of an American call on a stock that matures in two months and its price changes i) monthly ii) weekly iii) daily
Find the price of an American call on a stock that matures in two months and its price changes i) monthly ii) weekly iii) daily (no dividends, 1 month = 20 days = 4 weeks). The spot price of the stock is 310 and stock volatility is 30% per annum.
Build a binomial tree for each time frame.
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