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A stock price is currently $30. It is known that at the end of one year, it will be either $36 and $24. The exercise

A stock price is currently $30. It is known that at the end of one year, it will be either $36 and $24. The exercise price of a one-year European call option is $32. The risk-free interest rate is 5% per annum.

Construct a binomial tree to show the payoff of the call option at the expiration date.

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