What is today's price of an American call option? Use the...
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Finance
What is today's price of an American call option?
Use the following data for a two-period binomial model to answer the questions that follow. - The stock's price is $100. After three months, it either goes up and gets multiplied by the factor U = 1.13847256, or it goes down and gets multiplied by the factor D = 0.88664332. Options mature after T = 0.5 year and have a strike price of K - $105. The continuously compounded risk-free interest rater is 5 percent per year. Today's price of an American call option is

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