Question: 4. Consider a three-step binomial tree model such that S(O) = $50, u = r = 0.1 and p=0.3. 0.3 d = -0.2. a. Draw

4. Consider a three-step binomial tree model such that S(O) = $50, u = r = 0.1 and p=0.3. 0.3 d = -0.2. a. Draw three-step binomial tree of stock prices. b. Find the probability P(S(3)

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