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The rfr is 7 per annum with continuous compounding using

A stock price is currently 55. The stock price is expected to increase by 20% or decrease by 15% every year. The RFR is 7% per annum with continuous compounding. Using the Two-step binomial tree, find the price of its two-year European Call option with a strike price of 59.

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Finance Basics: The rfr is 7 per annum with continuous compounding using

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