Question: Let S = $70, K = $65, r = 6% (continuously compounded), d = 1%, s = 30%, and T = 2. What are the
Let S = $70, K = $65, r = 6% (continuously compounded), d = 1%, s = 30%, and T = 2. What are the appropriate values of u and d to build a 3-period binomial stock price tree?
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