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Consider a one-period binomial model of 12 months. Assume the stock price is $54.00, = 0.25, r = 0.04 and the exercise price of a
- Consider a one-period binomial model of 12 months. Assume the stock price is $54.00, = 0.25, r = 0.04 and the exercise price of a call option is $55. What is the forecasted price of the stock given an upward movement during the year?
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