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Consider a European call option (K=$100) expiring in one year on a stock trading for $97.2. The return volatility on the stock is 38% and

Consider a European call option (K=$100) expiring in one year on a stock trading for $97.2. The return volatility on the stock is 38% and the riskless rate is 5%. Find the price of the option using a Binomial Model with two steps.

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