Question: 2. PRICING IN BINOMIAL TREE MODEL (20 POINTs) Consider thre-period binomial tre model for the stock price S with t following param eters: So $100,

2. PRICING IN BINOMIAL TREE MODEL (20 POINTs) Consider thre-period binomial tre model for the stock price S with t following param eters: So $100, u = 1.2, d 0.9. Find the no-arbitrage present value of the (European) butterfly option with the following payoff function: 0, [100, 140 140-S, A(S) = [120, 1401. S [100, 1201. S S-100, Assume that 0.1

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