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A stock price is currently $50. Over each of the next two 3-month periods it is ex- pected to go up by 10% or down

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A stock price is currently $50. Over each of the next two 3-month periods it is ex- pected to go up by 10% or down by 8%. The risk-free interest is 5% per annum with continuous compounding. Calculate the value of a 6-month American call option with a strike price of $51. Use any method of your choice

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