What is the value of a 1-year european call option with a


A stock price is currently $47. Over each of the next 2 6-month periods it is expected to go up by 10% or down by 10%. The risk-free rate is 6% per annum with continuous compounding. What is the value of a 1-year European call option with a strike price of $50?

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Financial Management: What is the value of a 1-year european call option with a
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