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Binomial Model The current price of a stock is $22. In 1 year, the price will be either $27 or $14. The annual risk-free rate

Binomial Model

The current price of a stock is $22. In 1 year, the price will be either $27 or $14. The annual risk-free rate is 3%.

Find the price of a call option on the stock that has a strike price is of $25 and that expires in 1 year. (Hint: Use daily compounding.) Assume 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent.

need full answer no one on Chegg seems to get this right please help 3rd time im asking

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