A current price of a stock is 22 and the end of one year, Ask an Expert

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A current price of a stock is $22 and the end of one year its price will be either $27 or $17. The annual risk free rate is 6.0% based on daily compounding. A 1-year call option on the stock with an exercise price of $22 is available. Based on the binominal model, what is the options value?

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Financial Management, Finance

Category:- Financial Management
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