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Call option price using binomial model

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XYZ Corporation shares are selling at $25 on January 1, 2013. There is a call option available with exercise price of $26 and maturity in 60 days. The price is expected to either increase by 8% or decrease by 4% at the maturity of options. If the risk free rate is 4%, calculate the call option price using binomial model.

Reference no: EM131090054

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