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The stock price is currently at $50 per share and has annualized volatility of 30%. An at-the-money European call option with 2 months to maturity
The stock price is currently at $50 per share and has annualized volatility of 30%. An at-the-money European call option with 2 months to maturity is trading on this stock. Risk-free asset pays 0.5% interest rate per month. Find u, d, and R to plug into the binomial tree formula.
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