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Find the price of a call option on the stock

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Reference no: EM133115224

The current price of a stock is $15. In 6 months, the price will be either $18 or $13. The annual risk-free rate is 6%. Find the price of a call option on the stock that has a stock price of $14 and that expires in 6 months. (Hint: Use daily compounding.)

Reference no: EM133115224

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