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I need help solving the below. Need to learn how to solve. Timco stock is currently valued at 40. At the end of the year

I need help solving the below. Need to learn how to solve.

Timco stock is currently valued at 40. At the end of the year it will be worth either 45 or 37. The risk free rate is 2%. Find the value of a one year call option with strike price of 38.

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