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Up move is 3/2 and down move is 2/3 for a stock with the price...

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Finance

  1. Up move is 3/2 and down move is 2/3 for a stock with the price of 100$.
    1. Set up a two year tree for this stock
    2. What is the RNP assuming the annual risk free rate is 5%?
    1. Use the tree from previous question to value a put option with a strike of $100
    2. Value an option who gives u a payoff of 100 if the price of stock >100 and 0 otherwise.

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