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Show work, thanks. 3. Let S-100. K-95, ?-0.3, r-0.08. T-1 and 5-0. Let u-1.3. d- 0.8, and n-2. Construct the binomial tree for a call
Show work, thanks.
3. Let S-100. K-95, ?-0.3, r-0.08. T-1 and 5-0. Let u-1.3. d- 0.8, and n-2. Construct the binomial tree for a call option. At each node provide the premium, ?, and BStep by Step Solution
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