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Use the binomial tree option pricing model to compute the value for a call option with a strike price of $11. The stock is priced

Use the binomial tree option pricing model to compute the value for a call option with a strike price of $11. The stock is priced at $10 and over the next 1-month will be $12 or $8. The risk-free interest rate is 10%.

A. 0.52

B. 0.49

C. 0.55

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