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Q3) A stock price is currently trading at $70. Over each of the next two 3-month periods it is expected to go up by 15%

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A stock price is currently trading at $70. Over each of the next two 3-month periods it is expected to go up by 15% or down by 15%. The risk-free interest rate is 8% per annum with continuous compounding and the strike price is $80. Using the binomial tree model to price call options, what is the value of a 1-year European call option?

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