Calculate the price of a call option using the binomial pricing model and assuming that the short

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Calculate the price of a call option using the binomial pricing model and assuming that the short rate follows the Fabozzi Kalotay and Williams model. The current rate is 6%, mu is .1 and vol is .23. The strike price is 93.75 and the option matures in a year. Your answer should be in dollars to the nearest penny.

Posted Date: May 19, 2024 08:02 AM

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Calculate the price of a call option using the binomial pricing model and assuming that the short

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