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Using the binomial pricing model, estimate the price of a one-year call option on Micron stock with a strike price of 45 dollars calculate the

image text in transcribedUsing the binomial pricing model, estimate the price of a one-year call option on Micron stock with a strike price of 45 dollars

calculate the number of stocks and the value of bond contained in the replicating portfolio of this call

The current price of Micron stock is $50. In the next year the stock price will either go up by $10 or go down by $10. Micron pays no dividends. The one year risk-free rate is 6% and will remain constant

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