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Q3. A stock price is currently $90. Over each of the next two 6- month periods it is expected to go up by 10% or

Q3. A stock price is currently $90. Over each of the next two 6- month periods it is expected to go up by 10% or down by 10%. The risk-free interest rate is 8% per annum with continuous compounding. What is the value of a 1-year European call option with a strike price of $90

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