Solution-What is the price of the call

What is the price of the call

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Reference no: EM132710101

Stock price is currently $49 in the next year it will either fall by 29% or rise by 40.85%. The call has an exercise price of price of $47 and expiration of one year. The risk free rate is 5% per year.

What is the current value of the risk neutral probability of the up move?

What is the price of the call? (use risk neutral method)

Reference no: EM132710101

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What is the price of the call

Reference no: EM132710101

Reference no: EM132710101

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