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Calculate the stock prices in one period

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Reference no: EM132779836

By using the One - Period Binomial Option Pricing Model, solve the following question:

Suppose the stock price is $70, and u = 1.2 and d = 0.90

A) Calculate the stock prices in one period

B) What is the value of the Call option when the underlying asset increases or decreases?

C) Calculate the fractional Delta

D) What is the call price today if:

K = 70
R = 3%

Reference no: EM132779836

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