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The current price of a stock is 19 in 1 year the price will

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The current price of a stock is $19. In 1 year, the price will be either $26 or $15. The annual risk-free rate is 6%. Find the price of a call option on the stock that has a strike price is of $25 and that expires in 1 year. (Hint: Use daily compounding.) Round your answer to the nearest cent. Assume 365-day year.

Reference no: EM13481020

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