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Susan is using the binomial model, she observes a stock currently selling for $45 and estimates it will either go up to $55 or down
Susan is using the binomial model, she observes a stock currently selling for $45 and estimates it will either go up to $55 or down to $44. If the strike price is $45, the risk-free rate of interest is 5% a year and options will expire in a year, what is the value of the call option? $0.26 $2.81 $0.95 $1.83
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