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You are thinking about investing in a 1-year call option on GE stock with an exercise price of $151.5. The current price of a stock

"You are thinking about investing in a 1-year call option on GE stock with an exercise price of $151.5. The current price of a stock is $148, and at the end of one year its price will be either $154 or $144. Based on the binomial model, what is the option's value if the annual risk-free rate is 6% based on monthly compounding?"

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