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please show all work for solving Consider a European call on Amazon Stock (AMZN) that expires in one period. The current stock price is $100,
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Consider a European call on Amazon Stock (AMZN) that expires in one period. The current stock price is $100, the strike price is $120, and the risk-free rate is 5%. Assume AMZN stock will either go up to $140 or down to $80. Construct a replicating portfolio using shares of AMZN stock and a position in a risk-free asset ... what is the value of the call option? Call Option Price =$4.84 Call Option Price =$2.95 Call Option Price =$12.04 Call Option Price =$7.93Step by Step Solution
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