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Practice Question Value the call option using binomial pricing approach Suppose the stock now sells at $50, and will increase to $70 or fall to

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Practice Question Value the call option using binomial pricing approach Suppose the stock now sells at $50, and will increase to $70 or fall to $40 by year-end A call option on the stock with an exercise price of $55 and a time to expiration of one year The interest rate is 5%

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