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Consider three call options identical in every respect except for the maturity of 0.5, 1, and 1.5 years.

Specifically, the stock price is $100, the annually compounded risk free rate is 5%, and the strike price is $100. Use a one-period binomial model with u =4/3 and d = 3/4. Calculate the p and h. Explain

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92078903

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