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A stock price is currently $44. It is assumed that at the end of six months it will be either $36 or $67. The risk-free
A stock price is currently $44. It is assumed that at the end of six months it will be either $36 or $67. The risk-free interest rate is 4.5% per annum with continuous compounding. The stock doesn't pay dividends. One-step binomial tree is used to value options. What is the value of a six-month European call option with a strike price of $44? Round your final result to the nearest cents and input one number only, without units or percentage sign [%], using the dot [.] to separate decimals.
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