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b . A stock is trading at Rs 4 0 . It is known that the price of the stock will be either Rs 4

b $.$ A stock is trading at Rs $40 .$ It is known that the price of the stock will be either Rs $42$ or Rs $38$ after $1$ month. The risk free interest rate is $8 %$ p $.$ a $.$ with continuous compounding. What is the value of a $30$ day European call option with a strike price of Rs $39$ based on the Binomial Option Pricing approach?

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