(Answered) A stock currently sells for 50 in six months it will

Finance

A stock currently sells for $50. In six months, it will either rise to $55 or decline to $45. The risk-free interest rate is 6% per year.

1. Find the value of a European call option with an exercise price of $50.

2. Find the value of a European put option with an exercise price of $50, using the binomial approach.

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