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2 . The current price of Old Mutual stock is $ 2 0 . The annual standard deviation of the stock is 1 4 %
The current price of Old Mutual stock is $ The annual standard deviation of the stock is The riskfree rate is per year. Assume that Old Mutual stock pays no dividends. Using the information given, you are required to compute the value of a twoyear American call option with a strike price of $
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