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Given a 3-step binomial tree with S,-20, u-125%, d-: 75% and r-5%. 1. Calculate loc, the price a European call option with strike price K

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Given a 3-step binomial tree with S,-20, u-125%, d-: 75% and r-5%. 1. Calculate loc, the price a European call option with strike price K = 22; and c, the price of an American call option with the same strike price K = 22, Compare the two prices. 2. Calculate V the price a European put option with strike price K 22; anP, the price of an American put option with the same strike price K = 22, Compare the two prices

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