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Use the binomial option pricing model to calculate the price of a call option and put option. Spot price $35 Expiry 9 months Risk-free rate
Use the binomial option pricing model to calculate the price of a call option and put option.
Spot price $35
Expiry 9 months
Risk-free rate 4.25%
Up factor 1.12
Down factor 0.83
Risk neural probability 0.564
Show your calculations.
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