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QUESTION 9 The stock price of Apax Incorporated is currently $110. The stock price a...

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QUESTION 9 The stock price of Apax Incorporated is currently $110. The stock price a year from now will be other 5130 or $90 with equal probabilities. The interest rate at which investors can borrow is 10%. Using the binomial model, the value of a call option with an exercise price of 110 and an expiration date 1 year from now should be worth today $11.59 514 09 $17.82 $22.64

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