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What is the current value of a six-month call option

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Reference no: EM132382541

Suppose HSBC's stock price is currently $50. In the next six months it will either fall to $40 or rise to $60. The six-month risk-free interest rate is 2% (periodic rate). What is the current value of a six-month call option (on HSBC's stock) with an exercise price of $50?

Reference no: EM132382541

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