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Question 6 We can generalize the argument presented in the lecture (notes) on one-level binomial tree by considering a stock whose price is So and
Question 6 We can generalize the argument presented in the lecture (notes) on one-level binomial tree by considering a stock whose price is So and an option on the stock whose current price is v. We suppose that the option lasts for time T and that during the life of the option, the stock price can either move up from So to Sou or down to a new level Sod, where d
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