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you are attempting to value a call option with an exercise price of $ 1 0 6 and one year to expiration. The underlying stock
you are attempting to value a call option with an exercise price of $ and one year to expiration. The underlying stock pays no dividends, its current price is $ and you believe it has a chance of increasing to $ and a chance of decreasing to $ The riskfree rate of interest is Calculate the call options value using the twostate stock price model.
Note: Do not round intermediate calculations. Round your final answer to decimal places.
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