Calculate the price of a call option on stock of dynamic, Ask an Expert

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Calculate the price of a call option on stock of Dynamic Inc. given the following information: the current price of a share of Dynamic Inc. is $60. The strike price is $75 and the risk free rate is r=5% APR. The option expires in 2 years. Suppose the price of the stock will either up to $90 (with probability p=.65) or go down to $50 (with probability q=.35).

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Category:- Basic Finance
Reference No.:- M9867868

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