Question: Problem 1: S0=100 Su = 115 Price if stock price increases Sd 90 Price if stock price falls rf = 5.26% Using Binomial Model

Problem 1: S0=100 Su = 115 Price if stock price increases Sd 90 Price if stock price falls rf = 5.26% Using Binomial Model with two periods: t=0 and t=1: a. b. C. Price put (x=110) Price call (x=110) Prove that the prices calculated are or are not consistent with put-call parity

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