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A stock is currently selling for $37. Over the next two periods, the stock will move up by a factor of 1.40 or down by
A stock is currently selling for $37. Over the next two periods, the stock will move up by a factor of 1.40 or down by a factor of.55 each period. A call option with a strike price of $51 is available. If the risk-free rate of interest is 3.2 percent per period, what is the value of the call option? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Value of the call option A stock with a current price of $63 has a call option available with a strike price of $65. The stock will move up by a factor of.90 or down by a factor of .65 each period for the next two periods and the risk- free rate is 2.6 percent. What is the price of the call option today? Price of the call option
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