Question: S = 20 = 0.25 r = 0.05 = 0.02 T= 1 n =2 Using a binomial tree, if the cost of a certain European

S = 20

= 0.25 r = 0.05 = 0.02 T= 1

n =2

Using a binomial tree, if the cost of a certain European Call is calculated to be $3.00. What is the strike price of this call?

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