Question: Consider a one period binomial option pricing model where So u = 3, d= .5, r = .2 for a call of price X that

Consider a one period binomial option pricing model where So u

Consider a one period binomial option pricing model where So u = 3, d= .5, r = .2 for a call of price X that is the right to buy one share of stock at 3 at time one. Find the non-arbitrage price of the call option at t 0. Find also the portion Ao of stock to be purchased at t = 0. =

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