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QUESTION 9 The stock price of Apax Incorporated is currently $110. The stock price a year from now will be either $130 or 590 with

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QUESTION 9 The stock price of Apax Incorporated is currently $110. The stock price a year from now will be either $130 or 590 with equal probabilities. The Interest rate at which investors can borrow is 10% Using the binomial model, the value of a call option with an exercise price of $110 and an expiration date 1 year from now should be worth today $1159 $14.09 O $1782 $22 64

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