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PLEASE HELP ................ ITS URGENT ? ................ I NEEDIN 1 HOUR .................... Q2. Consider an at-the-money 6-month American call option on a non dividend paying

PLEASE HELP ................ ITS URGENT ? ................ I NEEDIN 1 HOUR ....................

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Q2. Consider an at-the-money 6-month American call option on a non dividend paying stock. The price of the stock is $50 now and it can move up by 25% or down by 20% each of 6-month period for the next 1 year. The continuously compounded risk-free interest rate is 4% per annum (a) Determine the value of the call option by constructing a binomial tree showing the stock price and option's value at each node of the binomial tree. Show all necessary workings. (20 marks)

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