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The current stock price of Bismarck industries is R200. At the end of the year the stock price will either be R260 or R160. Suppose

The current stock price of Bismarck industries is R200. At the end of the year the stock price will either be R260 or R160. Suppose the risk-free rate is 5%; A call option on the stock that expires in 1(one) year has a strike price of R210.

Required:

Calculate the price of the call option

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