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Suppose that the risk-free interest rate is r. Denote the time zero value of a certain asset by S0. Suppose that the motion of stock
Suppose that the risk-free interest rate is r. Denote the time zero value of a certain asset by S0. Suppose that the motion of stock prices is such that the value of the asset at time T will be either S0u or S0d. Assume further that d
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