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Calculate the price of a call option using the binomial pricing model and assuming that the short rate follows the Fabozzi Kalotay and Williams model.
Calculate the price of a call option using the binomial pricing model and assuming that the short rate follows the Fabozzi Kalotay and Williams model. The current rate is 5%, mu is .1 and vol is .23. The strike price is 92.45 and the option matures in a year. Your answer should be in dollars to the nearest penny. Thus, if your answer is five dollars and two cents then enter 5.02
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