Suppose MOD5 stock price is currently $100. In the next six months it will either...
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Suppose MOD5 stock price is currently $100. In the next six months it will either fall by 30% or rise by 60%. The six-month risk-free interest rate is 4%. (Note that it is not the yearly rate). What is the current value of a six-month call option with an exercise price of $100? Explain your
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