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The current price of a non-dividend paying stock is $36.65. Use a two-step tree to value a European call option on the stock with a
The current price of a non-dividend paying stock is $36.65. Use a two-step tree to value a European call option on the stock with a strike price $34.46 that expires in 12 months. The risk free rate is 2.5% per annum, and the volatility is 21.3%.What is the option price?
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