Determine the equilibrium price of an xyz 100 european call


Suppose XYZ stock is trading at So=$1.01, u=1.02, d=1/1.02. The period risk-free rate is 1%, and the stock pays no dividends. Using the n-period BOPM, determine the equilibrium price of an XYZ 100 European call expiring at the end of the third period (n=3).

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Financial Management: Determine the equilibrium price of an xyz 100 european call
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