Question: You are valuing options on MSFT. MSFT is currently trading at $300 and has volatility of 25%. You are considering calls and puts with one

You are valuing options on MSFT. MSFT is currently trading at $300 and has volatility of 25%. You are considering calls and puts with one month until expiration. LIBOR over this period is 3%. Value a European call option with a strike price of $320 and a European put option with a strike price of $280. Use a single-period tree as illustrated below. You are valuing options on MSFT. MSFT is currently trading at $300

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