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Binomial Model The current price of a stock is $18. In 1 year, the price will be either $27 or $16. The annual risk-free rate is 3%. Find the price of a call option on the stock that has a strike price is of $23 and that expires in 1 year. (Hint:Use daily compounding.) Round your answer to the nearest cent. Assume 365-day year. Do not round your intermediate calculations.

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