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You are using a two-step binomial tree to estimate the price of a call option on MCD. The strike price of the call option is

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You are using a two-step binomial tree to estimate the price of a call option on MCD. The strike price of the call option is $25. The price of MCD today is $27. The risk-free rate is 5%. What is the price of the call? Round your solution to the nearest three decimals if needed (i.e. 2.312). Please do not type the \$ symbol. u=2 d=0.8

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