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The common stock of WAN is currently priced at $37.90 a share. One year from now, the stock price is expected to be either $38

The common stock of WAN is currently priced at $37.90 a share. One year from now, the stock price is expected to be either $38 or $43 a share. The risk-free rate of return is 3.5 percent. What is the current value of one call option on this stock if the exercise price is $40?

can you please explain formula and answer so I can do it on the calculator.

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