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Now Extend the One-Period Binomial Model to a Two-Period World

Question 24

Multiple Choice

Now extend the one-period binomial model to a two-period world.Answer questions 16 through 18.
-What is the current value of the call?

A) 8.00
B) 7.30
C) 11.13
D) 0.619
E) none of the above

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