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Let S = $55, r = 4% (connnuously compounded), 8=5%., 0 = 35% , T = 1.5 In mis situation, the appropriate values of u

Let S = $55, r = 4% (connnuously compounded), 8=5%., 0 = 35% , T = 1.5 In mis situation, the appropriate values of u and d are 1.34394 and 0.73900, respectively. Using a 2-step binominal free, calculate the value of a $50-Strike European call option. $10.309 Pu-er-son -d 42=5751 UTd 6-55 754528

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