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The current price of a non-dividend paying stock is $30. Use a two-step tree to value...

The current price of a non-dividend paying stock is $30. Use a two-step tree to value a European call option on the stock with a strike price of $28 that expires in 12months. Each step is 6months, the continuously compounded risk-free rate is 8% per annum. Calculate the European call option price when u=1.2 and d=0.8.

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