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Imagine that a stock is currently trading for $100. The price is expected to go up to $120 or down to $90, in the next
Imagine that a stock is currently trading for $100. The price is expected to go up to $120 or down to $90, in the next year. No other possibilities exist. Assuming the risk-free rate is 10%, construct a binomial tree and value a call option on this stock with an expiration of 1 year, and a strike price of $110 show your work
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