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You are attempting to value a call option with an exercise price of $ 1 0 9 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.
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