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We are given a single-period binomial model with A(0) = 10, A(T) = 20,S(0) = 100...

We are given a single-period binomial model with A(0) = 10, A(T) = 20,S(0) = 100 and S(T) = 210 with probability 0.5 and S(T) = 90 with probability 0.5. Assuming no arbitrage exists, find the price C(0) of a call option with strike price X = 150.

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Answer #1

So ven A(O) 10 Af) 20 S (o) Do S21o 내ete AO) @sesants the vahe of the initaa.1 i este aime 2Ocu mu and a and s forth

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