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Assume that the stock of XYZ, Inc., is currently trading for $18 and will either rise to $24 or fall to $13 in one
Assume that the stock of XYZ, Inc., is currently trading for $18 and will either rise to $24 or fall to $13 in one year. The risk-free rate for one year is 11 percent. What is the value of a call option with a strike price of $26?
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