Find the price of call option

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Consider a stock with a current price of $100. Every 6 months, the stock price can either increase by 15% or decrease by 10%. The risk-free interest rate is 8%. The stock does not pay dividends. Consider also a 2-year Futures contract on this stock and a European call option with a strike price of $120. Find the price of this call option.

Reference no: EM133110378

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