Question: 1 0 . 1 0 Let S = $ 1 0 0 , K = $ 9 5 , r = 8 % ( continuously

10.10 Let S=$100,K=$95,r=8%(continuously compounded),=30%,=0.T=1 year, and n=3.
a. Verify that the binomial option price for an American call option is $18.283. Verify that there is never early exercise; hence, a European call would have the same price.
1 0 . 1 0 Let S = $ 1 0 0 , K = $ 9 5 , r = 8 % (

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