The up factor is equal to 115 and the down factor is equal, Financial Management

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The up factor is equal to 115 and the down factor is equal

1. Consider a binomial model. The current value of a stock is $50 and the strike price for a call option is $52. The up factor is equal to 1.15 and the down factor is equal to 0.90. The risk-free rate is 3%. What is the value of the call option?

2. Consider a binomial model. The current value of a stock is $70 and the strike price for a put option is $67. The up factor is equal to 1.10 and the down factor is equal to 0.80. The risk-free rate is 5%. What is the value of the put option?

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Financial Management: The up factor is equal to 115 and the down factor is equal

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Financial Management: The up factor is equal to 115 and the down factor is equal

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