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Binomial Option Pricing Model

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Figure

Figure 1.1: Profit profile (in rand) of a European call option on one Cisco share. Premium=R10; Strike price=R55.WPP1 and WPP2 denote Without-Premium-Paid and With-Premium-Paid respectively.
Figure 1.2: Profit profile (in rand) of a European put option on one Cisco share. Premium=R10; Strike price=R55.WPP1 and WPP2 denote Without-Premium-Paid and With-Premium-Paid respectively.
Figure 2.1: (A). One-period BOP model for stock price;(B). Value of one-period call in BOP model
Figure 2.2: (A). Two-period BOP model for stock price;(B). Value of two-period call in BOP model
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