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Consider a stock that is currently trading at $ 1 0 0 per share. In one period, the stock will rise in price to $

Consider a stock that is currently trading at $

100

per share. In one period, the stock will rise in price to $

150

or fall to $

50 .

The exercise price is $

100 .

If the stock prices falls to $

50,

what is the payoff on the call option?

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