Value of a stock is currently at 40 volatility of that, Financial Management

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Value of a stock is currently at 40 volatility of that

Value of a stock is currently at $40. Volatility of that stock is 30% per year and risk- free interest rate with continuous compounding is at 2.5% per year. Find the value of a 6-month call and a 6-month put option using a two-step binomial model. Both options have strike price of $41.

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Financial Management: Value of a stock is currently at 40 volatility of that

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