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A stock is currently priced at $130. Next year, the stock's price will be either $185 or $95. The risk free rate is 3.6 percent.
A stock is currently priced at $130. Next year, the stock's price will be either $185 or $95. The risk free rate is 3.6 percent. Using the binomial option pricing model, determine the price of a call option on this stock with an exercise price of $130 and expiring one year from today.
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Marketing For Financial Advisors
Authors: Eric Bradlow, Keith Niedermeier, Patti Williams
1st Edition
