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Suppose that S = K = $100, r = 0.08, = 0.30, = 0 and T = 1. Construct a two-period binomial model and consider
Suppose that S = K = $100, r = 0.08, = 0.30, = 0 and T = 1. Construct a two-period binomial model and consider stock price averages computed by averaging the 6-month and 1-year prices. What is the price of an Asian geometric average strike put?
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