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The current price of a stock is $20. In 1 year, the price will be either $27 or $15. The annual risk-free rate is 6%.

The current price of a stock is $20. In 1 year, the price will be either $27 or $15. The annual risk-free rate is 6%. Find the price of a call option on the stock that has a strike price of $23 and that expires in 1 year. (Hint: use daily compounding.) round your answer to the nearest cent, don't round your intermediate calculations.

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