Question: do it fast You use a one-period forward binomial tree for modeling the price movements of a stock which pays continuous dividends. (i) The length

do it fast

You use a one-period forward binomial tree for modeling the price movements of a stock which pays continuous dividends. (i) The length of the period is 3 months. (ii) The stock's volatility is 30%. A three-month derivative on the stock has the following binomial tree of prices: vd=o Calculate the risk-neutral expected payo' of the derivative in three months

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