Assume is the same as the risk-free rate find the


Call option price is $5.83. Current stock price is $62. consider the above call option price. After each period, there is a 40% chance for the stock price to go up, 25% chance to stay the same, and 35% chance to go down. Assume μ is the same as the risk-free rate. Find the up-factor u and down-factor d = 1/u.

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Financial Management: Assume is the same as the risk-free rate find the
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