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QUESTION 26 You are thinking about investing in a 1-year call option on GE stock with an exercise price of $87.5. The current price of

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QUESTION 26 "You are thinking about investing in a 1-year call option on GE stock with an exercise price of $87.5. The current price of a stock is $84, and at the end of one year its price will be either $90 or $80. Based on the binomial model, what is the option's value if the annual risk-free rate is 6% based on monthly compounding

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