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We solved for the current value of a call option for both a one period and the two period model (one period call worth $2.21,
We solved for the current value of a call option for both a one period and the two period model (one period call worth $2.21, two period call worth $4.24). Solve for the current value of the call option using both a three-period and four-period binomial option pricing model assuming all parameters except time are the same. In our example, these yields are 21%, 18%, and 16%
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