If the current price is 400 use a binomial tree to


Apple stock can either increase 9.54% or decrease 8.71% every month.

a. If the current price is $400, use a binomial tree to determine the possible outcomes for the value of the stock after three months.

b. If the risk free rate is 2%, what is the value of a call option with a strike price of $450 after three months?

c. If the risk free rate is 1% what is the value of a call option with a strike price of $380 after three months?

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Financial Management: If the current price is 400 use a binomial tree to
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