MetLife, Inc. stock is currently trading at $50 per share. The price of MetLife stock...
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MetLife, Inc. stock is currently trading at $50 per share. The price of MetLife stock can either increase by 20% or decrease by 20% each year. The probability of an increase is equal to the probability of a decrease (pu=pd= 0.5). The risk-free rate of return is 10% per year. What is the current equilibrium price (premium) of a 1-year European call option on MetLife with a strike price of $50?
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