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What is the price of a call option on the stock

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Reference no: EM132802994

Problem - BINOMIAL MODEL - The current price of a stock is $32. In 1 year, the price will be either $30 or $55. The annual risk-free rate is 4.50%. Using the binomial approach, what is the price of a call option on the stock that has an exercise price of $35 and that expires in 1 year?

Reference no: EM132802994

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