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Assume that a stock price is currently at S - $60. It is known that in one year stock price will be either $72 or

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Assume that a stock price is currently at S - $60. It is known that in one year stock price will be either $72 or $42. The annual interest rate is r= 5%. Using a one-period replicating portfolio method, what is the fair price of a European call option with strike price X+62 and 1 year to maturity? Please include two digits after the decimal point in your

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