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A European call option has a strike price of $79 and one month to expiry. The underlying stock is currently priced at $90. The one-step

A European call option has a strike price of $79 and one month to expiry. The underlying stock is currently priced at $90. The one-step Binomial model suggests that, in one months time, this share price will either rise to $100 or fall to $81. The risk free rate is 6% pa continuously compounded. Required: Use the one-step risk-neutral Binomial technique to price

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