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10. Derivatives and Risk Management: Current Value of Call Option selling at one of two prices $25 or $50. The risk-free rate is 4%. Using

image text in transcribed 10. Derivatives and Risk Management: Current Value of Call Option selling at one of two prices $25 or $50. The risk-free rate is 4%. Using the binomial option pricing model, create a riskless hedged investment and answer the following questions: What is the current value of the firm's call option? Do not round intermediate calculations. Round your answer to the nearest cent

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