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Problem 1 A stock with current value S(0) = 100 has an expected growth rate of its logarithm of v = 12% and a volatility

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Problem 1 A stock with current value S(0) = 100 has an expected growth rate of its logarithm of v = 12% and a volatility of that growth rate of o = 20%. Find suitable parameters of a binomial lattice representing this stock with a basic elementary period of 3 months. Draw the lattice and enter the node values for 1 year. What are the probabilities of attaining the various final nodes? Problem 1 A stock with current value S(0) = 100 has an expected growth rate of its logarithm of v = 12% and a volatility of that growth rate of o = 20%. Find suitable parameters of a binomial lattice representing this stock with a basic elementary period of 3 months. Draw the lattice and enter the node values for 1 year. What are the probabilities of attaining the various final nodes

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