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What is the approximate value of this option

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Question - A stock is currently $24. In six months it will be worth either $20 or $30. The interest rate is 2%. Consider a call option with a strike price of $23.

What is the approximate value of the risk-neutral probability, P, for this option?

What is the approximate value of this option?

What is the approximate value of the risk-neutral probability, P, for this option?

What is the approximate value of this option?

Reference no: EM132964470

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