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PLEASE QUICKLcurrently, a call option on Bayou stock is available with an exercise price of $ 1 0 0 and an expiration date one year
PLEASE QUICKLcurrently, a call option on Bayou stock is available with an exercise price of $ and an expiration date one year from now. Assume that the price of Bayou corporation stock today is $ Furthermore, it is estimated that Bayou stock will be selling for either $ or $ in one year. Also, assume that the annual risk free interest rate on a one year Treasury bill is percent, continuously compounded. Therefore, the bill will pay $ or $ Find the call option premium using the Binomial modeY
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