Give the price of both a 3-period strike

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You have a stock in the three-period binomial model such that S0 = 4, S1(H) = 8, S1(T) = 2,and r= 0.25.

Give the price of both a 3-period strike-$6 European call C and a 3-period strike-$6 European put P. As with the last assignment, what do you notice about the quantity C0-P0?

Reference no: EM132366819

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