Calculate the call option theoretical prices at each node

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European Puts and Calls are written on the same stock, with the same Exercise price and the same time to maturity.

RF = 3%, E = $75, S= $73.50, the stock's standard deviation of returns is 20%annually.

Create a three-period binomial tree, where the periods are monthly.

a. Calculate the call option theoretical prices at each node.

b. What is the Time Value of the call option at UU node

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Calculate the call option theoretical prices at each node : Calculate the call option theoretical prices at each node.

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