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Assume the following information for a stock and a European call option written on the stock...

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Finance

Assume the following information for a stock and a European calloption written on the stock ,Exersice price 80,current stock price70,the variance is0.4,time to expiration 0.5 semi annum ,risk freerate of return 0.07.Detaermin the time premium using Binomial,assume it is a two period call option.

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Assume the following information for a stock and a European calloption written on the stock ,Exersice price 80,current stock price70,the variance is0.4,time to expiration 0.5 semi annum ,risk freerate of return 0.07.Detaermin the time premium using Binomial,assume it is a two period call option.

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