Question: For a two-state binomial tree option model, if the stock initial price is $100 per share and the strike price is $98, the up parameter

For a two-state binomial tree option model, if the stock initial price is $100 per share and the strike price is $98, the up parameter is 1.1 and down parameter is 0.9 , what the value of Suu and Cud? (Suu is the stock value at the second state moved up level, while, Cud is the option value at the second state of the model level.) A. Suu =$110,Cud=$0 B. Suu=$121,Cud=$1 C. Suu =$81,Cud=$0 D. Suu=$99,Cud=$2

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