Find the price of a call option on the stock that has a, Financial Management

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Find the price of a call option on the stock that has a

The current price of a stock is $18. In 1 year, the price will be either $28 or $16. The annual risk-free rate is 5%. Find the price of a call option on the stock that has a strike price is of $24 and that expires in 1 year. (Hint: Use daily compounding.) Round your answer to the nearest cent. Assume 365-day year. Do not round your intermediate calculations.

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Financial Management: Find the price of a call option on the stock that has a

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