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A stock is priced at 40 and the periodic risk-free rate of interest is 8%. The value of a two-period European call option with a
A stock is priced at 40 and the periodic risk-free rate of interest is 8%. The value of a two-period European call option with a strike price of 37 on a share of stock using a binomial model with an up factor of 1.20 and a down factor of 0.833 is closest to: A) $9.13. C) $3.57. B) $9.25.
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