Consider a binomial lattice model for a 2-month call option with an exercise price of 200. Suppose that the share price either goes up by 4% or down by 3% each month, that the risk-free continuously-compounded rate is ½% per month and that the current share price is also 200. 

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To solve this problem using the binomial lattice model we can create a tree to represent the possibl... View the full answer