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Suppose S0 be 50 and the risk-free rate be 5%. The up and down factors are u = 1.40 and d = 0.75. Consider a

Suppose S0 be 50 and the risk-free rate be 5%. The up and down factors are u = 1.40 and d = 0.75. Consider a call and a put that have exercise prices of 45. How much is the value of the call option based on the binomial option pricing model.

10.99

7.45

5.67

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