Use the binomial model to find the value of the call option, Financial Management

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Use the binomial model to find the value of the call option

The price of Time Square Inc. stock will be either $77 or $93 at the end of the year. Call options are available with three months to expiration. T-bills currently yield 6 percent. The current price of Time Square stock is $80. Use the binomial model to find the value of the call option if the exercise price is $80 per share. (Use daily compounding)

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Financial Management: Use the binomial model to find the value of the call option

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Financial Management: Use the binomial model to find the value of the call option

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