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Question 4 A stock price is currently $ 3 0 . During each two - month period for the next four months, it is expected

Question 4
A stock price is currently $30. During each two-month period for the next four months, it is expected to increase by 8% or reduce by 10%. The riskfree interest rate is 5%. Use a two-step tree to calculate the value of a derivative that pays off [max(30-ST,0)]2 where ST is the stock price in four months?
Can I see the calculations clearly?
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