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You have the binomial tree: 23 20 17 15 15 10 5 T=0 T=1 T=2 The price of the stock A is $15 and has

You have the binomial tree:

23

20

17

15

15

10

5

T=0 T=1 T=2

The price of the stock A is $15 and has no dividends. The risk free rate is 5%. What is the payoff at t=2? What are the risk-neutral probabilities of the up and down moves in all nodes of the tree? What is the price of a European put with a strike price at $25?

.

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