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PLEASE NO EXCEL!! Can someone help me with this in the most simplified way?? Thank you. Question 6 1 out of 1 points = =

PLEASE NO EXCEL!! Can someone help me with this in the most "simplified" way?? Thank you.

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Question 6 1 out of 1 points = = S = = Let S = $50, r = 7% (continuously compounded), d = 5%, 0 = 40%, T = 1. In this situation, the appropriate values of u and d are 1.34023 and 0.76121, respectively. Using a 2-step binomial tree, calculate the value of a $40-strike European call option. Selected Answer: d. $13.609 Answers: $13.725 a. b. $14.094 $14.596 C. d. $13.609 e. $12.826

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