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The current price of a non-dividend paying stock is $30. Use a two-step tree to value a European call option on the stock with a

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The current price of a non-dividend paying stock is $30. Use a two-step tree to value a European call option on the stock with a strike price of $32 that expires in 6 months. Each step is 3 months, the risk free rate is 8% per annum with continuous compounding. What is the option price when u = 1.1 and d 0.9? Question 1 options: $1.69 $1.89 $1.29 B. $1.49

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