Question: Consider the binomail option pricing model with S0 = 120, up and down-factors u = 1.2, d = 0.9, and per period interest rate r

Consider the binomail option pricing model with S0 = 120, up and down-factors u = 1.2, d =

0.9, and per period interest rate r = 10%. Find the price and replicating strategy of a European

Call Option with strike K = 120 and exercise time T = 2.

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