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What is the price of a one-year call option

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Reference no: EM132705794

Currently, a stock has a price of $21.71. At the end of year, its price will either be $35 or $15. The annual risk-free rate is 3.2%, based on daily compounding. What is the price of a one-year call option with an exercise price of $22?

Reference no: EM132705794

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