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pean option? b) Consider a European call option on a non-dividend-paying stock where the stock price is Tk. 22, the strike price is Tk. 20,
pean option? b) Consider a European call option on a non-dividend-paying stock where the stock price is Tk. 22, the strike price is Tk. 20, the risk free rate is 8% per annum, the volatility is 20% per annum, and the time to maturity Is three months. i) Calculate u, d and p for a two-step tree. ii) Value the option using a two step tree
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