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

Question 17

Multiple Choice

Now extend the one-period binomial model to a two-period world.Answer questions 16 through 18.
-What is the value of the call if the stock goes up,then down?


A) 0.96
B) 16.80
C) 8.00
D) 0.00
E) none of the above

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