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1) Consider the following information. You want to price a call option for Mosiac Corporation. The call will be expiring one year today. You want

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1) Consider the following information. You want to price a call option for Mosiac Corporation. The call will be expiring one year today. You want to use quarters to value the call (90-Day periods) (MOS). Thus, you will use a four-period binomial option pricing model. You can observe the following: So = $18.45 Rf = 5% (per quarter, not annual) I Estimated Quarterly Up return: 4.85% Strike Price of Call = $17.75 Given these assumptions what would be the price of the call today? 20 points

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