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The price of a stock is currently $50. Over the course of the next year, the price is anticipated to rise to $55 or decline

The price of a stock is currently $50. Over the course of the next year, the price is anticipated to rise to $55 or decline to $46. If both outcomes are equally likely and the risk free interest rate is 3%, what is the price of a one year call option with an exercise price of $50 using the binomial model?

$2.43

$2.50

$2.66

$2.70

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