FoundationNumeric answer
Climbing a binomial tree · Part 1 of 3
A stock at $100 moves up 20% or down 20% each period. The riskless rate is 5% per period, so $1 grows to $1.05. Options have a strike of $100.
What is a one-period European call worth?
Answer with a number. Fractions, powers and expressions like 23/6 or C(52,5) are read correctly in practice.
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