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Imagine you work for a firm that trades options. Use a binomical model for 2 periods. The option is expiring in 6 months. At time
Imagine you work for a firm that trades options. Use a binomical model for 2 periods. The option is expiring in 6 months. At time 0, S0 = 80 Upfactor = u = 1.1 Downfactor = d = 0.9 ?0 = amount ...
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