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The current price of Tissue Corporation stock is $ 52. Next year, this stock price will either go up by 30% or go down by
The current price of Tissue Corporation stock is $ 52. Next year, this stock price will either go up by 30% or go down by 30%. The stock pays no dividends. The one-year risk- free interest rate is 3.5% and will remain constant. You want to estimate the price of a one-year call option on Tissue Corp.s stock with a strike price of $ 60. Calculate the risk- neutral probabilities.
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