Question: How did you get Fu = 11 & Fd = 0?? **Can you explain** **Show Calculation** PROBLEM 1: Use the up-down binomial pricing method to
How did you get Fu = 11 & Fd = 0?? **Can you explain** **Show Calculation**
PROBLEM 1: Use the "up-down" binomial pricing method to derive call option values for the following conditions: A. S=30,K=34,r=3%,t=.25,u=1.5,d=.5 and there is only one step or "jump" before expiration. Assume this is a European option. Show your work
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