Question: Construct a table containing the up and down factors for a one-year option with a stock volatility of 55 percent and a risk-free rate of

Construct a table containing the up and down factors for a one-year option with a stock volatility of 55 percent and a risk-free rate of 7 percent for n = 1, 5, 10, 50, and 100, where n is the number of binomial periods. Let u and d be defined as
u = e( (T/n
d = 1/u.

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