Question: 1 . Consider a single period CRR model wih S 0 = $ 1 0 0 , S 1 = $ 2 0 0 or

1. Consider a single period CRR model wih S0= $100, S1= $200 or $50, r =0.25.
(a) Find the arbitrage free initial price of a European call option for one share of stock where the strike price is K=100 and the excercise time T=1.

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