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( 15 pts) The current price of a stock is $50 and we assume it can be modeled by geometric Brownian motion with =.15. If

( 15 pts) The current price of a stock is $50 and we assume it can be modeled by geometric Brownian motion with =.15. If the interest rate is 5% and we want to sell an option to buy the stock for $55 in 2 years, what should be the initial price of the option for there not to be an arbitrage opportunity

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