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Let S=40, K=40, r=8% (continuously compounded), =30%, dividends=0, T=0.5 years, and number of binomial periods=2. Compute the prices of American call and put options. Please
Let S=40, K=40, r=8% (continuously compounded), =30%, dividends=0, T=0.5 years, and number of binomial periods=2. Compute the prices of American call and put options.
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