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Let S = 100 , K = 95 ,r = 0 . 08 , T = 1 and = 0. Let u = 1 .

Let S = 100, K = 95,r = 0.08, T = 1 and = 0. Let u = 1.3, d = 0.8, and n = 2. Construct the binomial tree for a call option. At each node provide the premium, , and B.

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