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  3. the current price of a stock is $20, and at the en

The current price of a stock is $20, and at the end of one year...

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Finance

  1. The current price of a stock is $20, and at the end of one year its price will be either $10 or $30. Theannual risk-free rate is 6%, based on daily compounding. A one-year call option on the stock, with an exercise price of $16, is available. Based on the binomial model, what is the options value?

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