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You are considering selling a call option on a non-dividend stock that has a current price of $100 per share. The option will have an
You are considering selling a call option on a non-dividend stock that has a current price of $100 per share. The option will have an expiration date of 1 year and a strike price of $110. You have determined that the stock will either be worth $125 or $80 one-year from today and the risk-free rate is 10%. Using a 1-step binomial option pricing model, determine the price for the call option.
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