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Suppose that, in each period, the cost of a security either goes up by a factor of u = 2 or down by a factor

Suppose that, in each period, the cost of a security either goes up by a factor of u = 2 or down by a factor d = 1/2. Assume the initial price of the security is $100 and that the interest rate r is 0.

What is the expected value of the payoff of the call option?

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