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Please answer ASAP!!! The current price of KD Industries stock is $121. In the next year, the stock price will either go up to $130
Please answer ASAP!!!
The current price of KD Industries stock is $121. In the next year, the stock price will either go up to $130 or go down to $110. KD pays no dividends. The one-year risk-free rate is 5% and will remain constant. Using the binomial pricing model, the calculated price of a one-year call option on KD stock with a strike price of $121 is closest to: A. $7.36 B. $4.95 C. $6.36 D. $4.28Step by Step Solution
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