The binominal model-what is the options value

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Reference no: EM13730679

A current price of a stock is $22 and the end of one year its price will be either $27 or $17. The annual risk free rate is 6.0% based on daily compounding. A 1-year call option on the stock with an exercise price of $22 is available. Based on the binominal model, what is the options value?

Reference no: EM13730679

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