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What is the current equilibrium price

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MetLife, Inc. stock is currently trading at $50 per share. The price of MetLife stock can either increase by 20% or decrease by 20% each year. The probability of an increase is equal to the probability of a decrease (). The risk-free rate of return is 10% per year. What is the current equilibrium price of a 2-year European call option on MetLife with a strike price of $50?

Reference no: EM132413472

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