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* 1. You are given the following regarding stock of Widget World Wide (WWW): *The stock is currently selling for $50. *One year from now

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* 1. You are given the following regarding stock of Widget World Wide (WWW): *The stock is currently selling for $50. *One year from now the stock will sell for either $40 or $55. *The stock pays dividends continuously at a rate proportional to its price. The dividend yield is 10%. * The continuously compounded risk-free interest rate is 5%. Calculate the fairly price of this Call option

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