Question: How to solve this problem? plz solve it step by step with formulas :25/26 Binomial Model for A Dividend Paying Stock - = = Example
How to solve this problem? plz solve it step by step with formulas

:25/26 Binomial Model for A Dividend Paying Stock - = = Example Suppose that S = $50, 0 = 0.4463, K = $50, T = 0.5, and the risk-free rate is r = 5%. Find the price of the American call option today by using the three-step binomial model (we will consider a 3-steps tree for a better intuition). Assume that the stock will pay dividend of $3 in three months. :25/26 Binomial Model for A Dividend Paying Stock - = = Example Suppose that S = $50, 0 = 0.4463, K = $50, T = 0.5, and the risk-free rate is r = 5%. Find the price of the American call option today by using the three-step binomial model (we will consider a 3-steps tree for a better intuition). Assume that the stock will pay dividend of $3 in three months
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