uppose Carol's stock price is currently $20. If the standard deviation of the continuously  compounded returns (σ) on a stock is 60 percent per year. The annual risk-free rate is 12%,  compounded every 6 months.  A. Using one-step binomial tree, what is the current value of a six-month call option with an  exercise price of $25? B. Using two-step binomial tree, what is the current value of a one-year put option with an  exercise price of $25?

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