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Create a two-period binomial tree and carefully write prices of underlying asset and option next to each node. Value an American call option on the geometric average of the price of a non-dividend-paying stock when the stock price is $50.00, the strike price is $49.00, the risk-free interest rate is 4.00% per annum, the volatility is 31% per annum, and the time to maturity is 6 months. The geometric average is measured from time zero onwards.

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