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Hi there, can you solve this and please show your work thanks A stock price is currently $50. Over each of the next two 3-month

image text in transcribedHi there, can you solve this and please show your work

thanks

A stock price is currently $50. Over each of the next two 3-month periods it is expected to go up by 6% or down by 5%. The risk-free interest rate is 5% per annum with continuous compounding. What is the value of a 6-month European call option with a strike price of $51? What is the value of a 6-month American call option with a strike price of $51

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