Compute the price of both the call and put options using a


SBO stock is currently selling in the market for $55.00. You are looking at its 3-month call and put options which have a strike price of $57. The stock price is expected to either rise or fall by 2% each month and the risk-free interest rate is 5% per annum. Using Excel, compute the price of both the call and put options using a three-step binomial tree.

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Financial Management: Compute the price of both the call and put options using a
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