Compute the price of the option

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Reference no: EM132181838

Question - In a two periods binomial model consider a European call option with strike K = 95$. The current stock price is S0 = 100$ and u = 1.36343, d = 0.82696, and the riskless rate is r = 0.0618. Compute the price of the option and the number of stocks in the hedging/replicating portfolio.

Reference no: EM132181838

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