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Use a three-step Binomial Tree Model for stock with an initial stock price S 0 =70, market upswing u=1.25, market downswing d=0.8, strike price X=50
Use a three-step Binomial Tree Model for stock with an initial stock price S0=70, market upswing u=1.25, market downswing d=0.8, strike price X=50 , T = 3 months, monthly interest rate r=0.06, and a down-and-out barrier set at $65, to find a European down-and-out barrier call option price at time t=0.
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