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Call options with an exercise price of $20 and 1 year to expiration are available. Currently, the market price of the underlying stock is $18,
Call options with an exercise price of $20 and 1 year to expiration are available. Currently, the market price of the underlying stock is $18, however, this market price is expected to either increase to $22 or decrease to $14 in a year's time. If the risk-free rate is 5%, what is the value of this call option?
Round only final answer to 2 decimals
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