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Problem 2 (6 pic) In a simple market one-period binomial tree model. we know that the simple compounding atmual interest rate is given by 1'

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Problem 2 (6 pic) In a simple market one-period binomial tree model. we know that the simple compounding atmual interest rate is given by 1' = 8%. The stock price satises 3(0) = 65 and S(1)- 8D. with probabilit p, ' 40, with prohabilitlp. where0

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