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A stock is currently priced at $100. One period later it can either go up to $125, or down to $80. Assume a call option

A stock is currently priced at $100. One period later it can either go up to $125, or down to $80. Assume a call option with an exercise price of $100, and a risk-free rate of 7%. What is the call price?

a. $17.25

b. $13.58

c. $14.02

d. $16.85

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