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. II. STATE PRICES AND P VS. Q 1. Consider a binomial model with two assets, S' and $2. State u and state d are

. II. STATE PRICES AND P VS. Q 1. Consider a binomial model with two assets, S' and $2. State u and state d are equally likely. S' costs 90 today and pays off 120 in state u and 80 in state d. S' co...

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