Question: Binomial tree. S0= 30 Strike = 34 U = 1.11 D = 0.9 Rf = 0.06 2 four month periods Q - Use two step

Binomial tree.

S0= 30

Strike = 34

U = 1.11

D = 0.9

Rf = 0.06

2 four month periods

Q - Use two step binomial tree to calculate the value of eight month European call and put options using no arbitrage approach

yes rf is continiously compounded. thankyou for your response

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