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Suppose you set up a spreadsheet with 10 periods.You wish to value an option with a one-year expiration.The stock's annual standard deviation is 30%, the

Suppose you set up a spreadsheet with 10 periods.You wish to value an option with a one-year expiration.The stock's annual standard deviation is 30%, the risk-free rate is r = 4% and the dividend yield on the stock is 1%.Using the calibration solution used in class, what would be the value foru?

What would be the value ofd?

What would be the value ofp?

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