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UMU ULU gees 11/25/2012 PM Homework: Ch 21B HW, Valuing Options, 325 Save m Score: 0 of 2 pts 1 of 6 (1 complete) HW

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UMU ULU gees 11/25/2012 PM Homework: Ch 21B HW, Valuing Options, 325 Save m Score: 0 of 2 pts 1 of 6 (1 complete) HW Score: 0%, 0 of 15 pts P21-1 (similar to) Question Help The current price of Estelle Corporation stock is $21.00. In each of the next two years, this stock price will either go up by 22% or go down by 22%. The stock pays no ce dividends. The one-year risk-free interest rate is 6.0% and will remain constant. Using the Binomial Model, calculate the price of a one-yeur cal option on Esteio stock with a strike price of $21.00 The price of the one-year call option is $. Round to to the nearest cent.) Enter your answer in the answer box and then click Check Antwer All parts showing CA 23

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