The current price of a non-dividend-paying stock is $30. Over the next three months it...
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Finance
The current price of a non-dividend-paying stock is $30. Over the next three months it is expected to rise to $36 or fall to $26. Assume that the risk-free rate is 5% per annum (continuously compounded). What is the value of a three-month call option with strike price of $32? (please write your answer with two decimal places.)
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