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Business, 21.08.2019 02:10 larry5007

You are attempting to value a call option with an exercise price of $108 and one year to expiration. the underlying stock pays no dividends, its current price is $108, and you believe it has a 50% chance of increasing to $133 and a 50% chance of decreasing to $83. the risk-free rate of interest is 9%. calculate the call option’s value using the two-state stock price model. (do not round intermediate calculations and round your final answer to 2 decimal places.)

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You are attempting to value a call option with an exercise price of $108 and one year to expiration....
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