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Suppose Ford's stock price is currently $10, and in the next six months it will either fall to $8 or rise to $15. The six-month

Suppose Ford's stock price is currently $10, and in the next six months it will either fall to $8 or rise to $15. The six-month risk-free interest rate is 1% (it is not the yearly rate). What is the current value of a six-month call option with an exercise price of $10? Explain your answer.

Note: std of the u and d are not needed...

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