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n, 3. (20 pts) In a binomial tree model, let S(0) = 80 dollars, r = 0.4%, u = 0.015 and d = -0.01. Find
n, 3. (20 pts) In a binomial tree model, let S(0) = 80 dollars, r = 0.4%, u = 0.015 and d = -0.01. Find m, x(1) in the Cox-Ross-Rubinstein Formula formula, and the time 0 price CE of a European call option with strike X = 90 dollars to be exercised after N = 50 time steps. n, 3. (20 pts) In a binomial tree model, let S(0) = 80 dollars, r = 0.4%, u = 0.015 and d = -0.01. Find m, x(1) in the Cox-Ross-Rubinstein Formula formula, and the time 0 price CE of a European call option with strike X = 90 dollars to be exercised after N = 50 time steps
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