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Consider a two period binomial option pricing setting. The current stock price is $49. In each period, the stock may increase by 1.22 or decrease

Consider a two period binomial option pricing setting. The current stock price is $49. In each period, the stock may increase by 1.22 or decrease by 0.88. One plus the riskfree rate, rf is 1.07. This riskfree rate applies to each period within the two period setting. What is the initial value of a call option with a strike price of $48?

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