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Quiz 3 (8 pts) 1. Assume that the strike price is $100. The time to maturity T is 2 months. Risk-free rate is 0.1, u
Quiz 3 (8 pts) 1. Assume that the strike price is $100. The time to maturity T is 2 months. Risk-free rate is 0.1, u = 1.21, d =0.82. Price the European and American binary calls if the spot price di...
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