Consider a binomial model s0 100 and r 001 and two


Consider a binomial model S(0) = 100 and r = .001 and two possible return values m1 = .005 and m2 = −.003. Find the value of a European call with expiry time at step 50 and strike price X = 105. Use the Gaussian approximation of the binomial distribution to approximate the sum.

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Financial Management: Consider a binomial model s0 100 and r 001 and two
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