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Price a both a put and call option in a one-period binomial tree with S=10, X=10, u=1.20, d=0.9, and r=5%. Correct put price is $0.48.
Price a both a put and call option in a one-period binomial tree with S=10, X=10, u=1.20, d=0.9, and r=5%.
Correct put price is $0.48. Please show how.
Please also calculate the call price.
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