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Binomial Model The current price of a stock is $16. In 6 months, the price will be either $20 or $12. The annual risk-free rate

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Binomial Model The current price of a stock is $16. In 6 months, the price will be either $20 or $12. The annual risk-free rate is 7%. Find the price of a call option on the stock that has a strike price of $14 and that expires in 6 months. (Hint: Use daily compounding.) Assume a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent. $

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