Consider a recombinant binomial tree. There are (j/n) paths to reach node ???? ???? in n total
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Consider a recombinant binomial tree. There are (j/n) paths to reach node ???????? in n total steps and j up-steps. There are no interest rates. An asset is worth zero today and goes up or down by 1 each day. Find the price of a call option struck at zero as a function of the number of steps to expiry.
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