A stock selling for $25 today will, in a year, be worth either $35 or $20. If
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A stock selling for $25 today will, in a year, be worth either $35 or $20. If the interest rate is 8%, what is the value today of a 1-year call option on the stock with exercise price $30? Use the simultaneous equation approach of section 17.2 to price the option.
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