The current price of a stock is 15 in 6 months the price


The current price of a stock is $15. In 6 months, the price will be either $18 or $13. The annual risk-free rate is 6 percent. Find the price of a call option on the stock that has an exercise price of $14 and that expires in 6 months.

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Finance Basics: The current price of a stock is 15 in 6 months the price
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