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Suppose you are attempting to value a 1-year expiration option on a stock with volatility...

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Finance

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Suppose you are attempting to value a 1-year expiration option on a stock with volatility (ie, annualized standard deviation) of 0.30 1riod of 1 year b. subperiods, each month. 12 superiods, each month. What would be the appropriate values for u and dif your binomial model is set up using: (Do not round intermediate calculations. Round your answers to 4 decimal places.) 1.3499 Subperiods At Tin 1 1/1 = 1 4 1/4 = 0.25 12 1/12 = 0.0833 d - exp(-OVAL) 0.7408

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