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A stock price is currently $45. At the end of six months, it will be either $51 or $41. The risk-free interest rate is 5%.

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A stock price is currently $45. At the end of six months, it will be either $51 or $41. The risk-free interest rate is 5%. 1. Use the no-arbitrage binomial method to calculate the value of a 6-month European call option on the stock with strike price $43. 2. Calculate the same option value using the risk- neutral method M SHE

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