A stock is currently selling for 39 over the next two, Ask an Expert

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A stock is currently selling for $39. Over the next two periods, the stock will move up by a factor of 1.29 or move down by a factor of 0.53 each period. A call option with a struck price of $50 is available. If the risk-free rate of interest is 3.2 percent per period, what is the value of the call option?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91608051

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