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Question
A stock with a current price of $18 will either move up by a factor of 1.2 or down by a factor of .9 each period over the next two periods. The risk-free rate of interest is 4.5 percent. What is the current value of a call option with a strike price of $20?A. $1.02
B. $1.08
C. $1.17
D. $1.21
E. $1.27
Answer
This answer is hidden. It contains 2 characters.
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