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You are trying to value a one-period call option on Twitter with a strike price of $32. The current risk-free rate is 10%. Next year,
You are trying to value a one-period call option on Twitter with a strike price of $32. The current risk-free rate is 10%. Next year, the price of Twtr will be $38 if the economy is good or $22 if the economy is bad. Unfortunately, you dont know the current stock price for Twtr. However, you know that a put option on the stock with a strike price of $30 has a current price of $2.80. What is the value of the call option?
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