Question: ( 5 points ) Knowing what you learned about risk-less hedges and the binomial option pricing model, calculate the value of the call with X=$50;

(5 points) Knowing what you learned about risk-less hedges and the binomial option pricing model, calculate the value of the call with X=$50; S=$60; Two possible states: Good= $60; Bad =$40; R_f = 10%

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(2 points) How are the binomial and the Black/Scholes models related?

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