Question: Assuming that each step represents two months, build a two-step binomial tree of the stock The current price of a non-dividend paying stock is $540/share.

The current price of a non-dividend paying stock is $540/share. The standard deviation of the stock is 60%.Assuming that each step represents two months, build a two-step binomial tree of the stock

The current price of a non-dividend paying stock is $540/share. The standard deviation of the stock is 60%. The risk-free rate is 6%.

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