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What is the value of the call option today

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Question - Consider a two-year European call option with a strike price of $ 60 on a stock whose current price is $ 50. Suppose that there are two- time steps of one year, and in each time step the stock price either moves up by a proportional amount of 10% or down by a proportional amount of 10%. The risk-free interest rate is 5%. What is the value of the call option today?

Reference no: EM132767999

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