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Call options with an exercise price of $40 and 1 year to expiration are available. Currently, the market price of the underlying stock is $36,

Call options with an exercise price of $40 and 1 year to expiration are available. Currently, the market price of the underlying stock is $36, however, this market price is expected to either increase to $44 or decrease to $28 in a year's time. If the risk-free rate is 3%, what is the value of this call option?

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