Fnd the value of a 6-month european

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A stock price is currently $50. Over each of the next two 3-month periods it is expected to go up by 6% or down by 7%. The risk-free interest rate is 5% per annum with continuous compounding. Use the binomial tree approach to ?nd the value of a 6-month European put option with a strike price of 351. Then without using binomial trees (use any other approach) price the European call option with the same strike and maturity.

Reference no: EM133120447

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