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The price of a stock is currently $38. Over the course of the next year, the price is anticipated to rise to $41 or decline

The price of a stock is currently $38. Over the course of the next year, the price is anticipated to rise to $41 or decline to $36. If the upside has a 65% probability of occurring and the risk free interest rate is 3%, what is the price of a six month call option with an exercise price of $35 using the binomial model?

$3.89

$4.25

$4.70

$4.18

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