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1. In the case of a 1-year option, the current stock price'is $52 per share. If the stock price has an equal chance of ending

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1. In the case of a 1-year option, the current stock price'is $52 per share. If the stock price has an equal chance of ending the year at either $58 or $45, what is the A given an interest rate of 6.0% and an exercise price of $50? (30pts) A) 0.2145 X-50 B) 0.3254 M-L12 58 C) 0.5411 D) D.6154 $2

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