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A European Call Option on a non-dividend-paying stock where the stock price is $40, the strike price is $40, the risk-free rate is 4% per annum, the

A European Call Option on a non-dividend-paying stock where the stock price is $40, the strike price is $40, the risk-free rate is 4% per annum, the volatility is 30% per annum, and the time to maturity is 6-mo.
a) Calculate  u,  d,  and  p  for a two-step tree
b) Value the option using a two-step tree.

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