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In a one-step binomial tree model, it is assumed that the initial share price of $10 will either increase to $12 or decrease to $8

In a one-step binomial tree model, it is assumed that the initial share price of $10 will either increase to $12 or decrease to $8 at the end of one year. Assume that the annual risk-free force of interest is 0.01 and that no dividends are payable. Calculate the price of a one-year European call option with strike price of $11.

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