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Question 6 A European call option has strike price $20,000 and exercise in three years. The current price of the underlier is $18,400 and will

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Question 6 A European call option has strike price $20,000 and exercise in three years. The current price of the underlier is $18,400 and will either go up by 10% or down 8% each year (independent of what happens in the other years). Find the no-arbitrage price of the option, if the annual effective risk-free effective interest rate is 4%

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