A stock price is 100 now and will be either 108 or 93 in a


A stock price is 100 now and will be either 108 or 93 in a year. The RFR is 8% per annum with continuous compounding. Using the risk-neutral valuation, find the price of its one year European call option with a strike price of 102.

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Finance Basics: A stock price is 100 now and will be either 108 or 93 in a
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