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Question: an asset has the current spot price at dollar100 in...

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An asset has the current spot price at $100. In the future, assuming there is only two cases happen with the spot price, the price will increase to $120 or decrease to $80. Risk free rate is 3.45% per period. Apply one period binomial model to estimate the fair value of options on this asset.

I learned this model but do not know how to apply, please do this example to demonstrate for me.

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