A stock index is currently 1050 and has a volatility of 20


A stock index is currently 1050 and has a volatility of 20% and a dividend yield of 2%. The risk-free rate is 5%. What is the value of a European 6-month call option with a strike price of 1000 using a 2-step tree?

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Financial Management: A stock index is currently 1050 and has a volatility of 20
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