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Required: You are attempting to value a call option with an exercise price of $ 1 1 0 and one year to expiration. The underlying
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You are attempting to value a call option with an exercise price of $ and one year to expiration. The underlying stock pays no dividends, its current price is $ and you believe it has a chance of increasing to $ and a chance of decreasing to $ The riskfree rate of interest is Consider one share of stock and two written calls. Calculate the call option's value using the twostate stock price model. Do not round intermediate calculations. Round your answer to decimal places.
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