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A stock is currently priced at $40.00. The risk free rate is 3.6% per annum with continuous compounding. In 9 months, its price will be

A stock is currently priced at $40.00. The risk free rate is 3.6% per annum with continuous compounding. In 9 months, its price will be either $44.80 or $33.20.

Using the binomial tree model, compute the price of a European call with strike price $36.32 expiring in 9 months.

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