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A stock with a current price of $28 will either move up by a factor of 1.10 or down by a factor of .90 each
A stock with a current price of $28 will either move up by a factor of 1.10 or down by a factor of .90 each period over the next two periods. The risk-free rate of interest is 4 percent. What is the current value of a call option with a strike price of $30?
$1.36
$1.71
$1.49
$2.13
$2.09
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