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You have been offered the chance to purchase stock in a firm. The seller wants $55 per share but offers to repurchase the stock at

You have been offered the chance to purchase stock in a firm. The seller wants $55 per share but offers to repurchase the stock at the end of one-half year for $50 per share. If the of the shares log-returns is 80% determine the true value per share. Assume that the interest rate is 10%.

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