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Use a one-period binomial tree and the prices of two traded options to calculate the...

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Accounting

Use a one-period binomial tree and the prices of two traded options to calculate the stock's implied volatility. The stock price is $148.2 and the risk-free interest rate is 4.19% per annum.

Option 1 has a strike price of $120 and is worth $30.33.

Option 2 has a strike price of $129 and is worth $19.30

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