Question: Use a three-period binomial model for this question. A stock has a current price of $75 and can go up by 20% or down by

Use a three-period binomial model for this question. A stock has a current price of $75 and can go up by 20% or down by 10% of its value over any period. The risk-free rate is 8% per period.

a) Calculate the current value of a European Call option which has a strike price of $70.

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