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Suppose that a European call option with strike price of $105 expires in 1 year. If the risk-free interest rate is 3% per annum and
Suppose that a European call option with strike price of $105 expires in 1 year. If the risk-free interest rate is 3% per annum and the current stock price is $100, use a 12-period binomial tree to estimate the present value of the option. Assume u = 1.1 and d = 0.9.
This is the tree, I just need the value of the option
\begin{tabular}{|l|l|l|l|l|l|l|l|l|} \hline & & & & & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|l|l|l|l|l|} \hline & & & & & & & \\ \hline \end{tabular}Step by Step Solution
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