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Black-scholes pricing formula

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Use the following parameters: So = 100, K = 101, r = 0.05, T = 0.5, a = 0.3, no dividend is paid. Use the Black-Scholes pricing formula given in class to price the European call option. Can you compare it to the result from a binomial tree? You can set At = 0.25 and use a two period binomial tree.

Reference no: EM133057205

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