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The current price of a stock that does not pay dividends is $46. The risk-free rate is 2.3%. If one expects the price to either

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The current price of a stock that does not pay dividends is $46. The risk-free rate is 2.3%. If one expects the price to either go up to $55 or go down to $34 with equal probabilities a year from now, what is the price of a European call option that expires a year from now and has the strike price of $40

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