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2 points) You have the following information: . The current stock price is So-50. . The expected annual continuously compounded return on the stock is
2 points) You have the following information: . The current stock price is So-50. . The expected annual continuously compounded return on the stock is -12% and the stock does not pay a dividend. The risk-free rate is 3%. The annualized volatility for the stock return is -40%. * A European call option on the stock that expires in one year has a strike price of 52. Using a one-period binomial model, what is the expected annual continuously compound return on the call option
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