For a two-period binomial stock price model, you are given: (i) The length of each period is
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For a two-period binomial stock price model, you are given:
(i) The length of each period is 1 year.
(ii) The (incomplete) price evolution of a 2-year European call option on the stock:
Calculate the current price of the call option.
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Lets deduce the values of the riskneutral probability p and the discount factor e r per ...View the full answer
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