Specifically the stock price is 100 the annually compounded


Consider three call options identical in every respect except for the maturity of 0.5, 1, and 1.5 years. Specifically, the stock price is $100, the annually compounded risk free rate is 5%, and the strike price is $100. Use a one-period binomial model with u =4/3 and d = 3/4. Calculate the p and h. Explain

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Finance Basics: Specifically the stock price is 100 the annually compounded
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