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1. Consider a stock worth $25 that can go up or down by 15 percent per period. The risk-free rate is 10 percent. Use one

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1. Consider a stock worth $25 that can go up or down by 15 percent per period. The risk-free rate is 10 percent. Use one binomial period. a. Determine the two possible stock prices for the next period. b. Determine the intrinsic values at expiration of a European call option with an exercise price of $25. c. Find the value of the option today

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