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QUESTION 3 Suppose you are attempting to value a one-year maturity option on a stock with volatility of 20% What would be the appropriate value

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QUESTION 3 Suppose you are attempting to value a one-year maturity option on a stock with volatility of 20% What would be the appropriate value for the down factor (d) Il your binomial model is set up using 4 sub-periods (quarterly? 0.946 O 0.869 0.942 0.827

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