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Calculate the price of a? one-year call option

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The current price of Estelle Corporation stock is $ 21.00. In each of the next two? years, this stock price will either go up by 20% or go down by 20 %. The stock pays no dividends. The? one-year risk-free interest rate is 6.0 % and will remain constant. Using the Binomial? Model, calculate the price of a? one-year call option on Estelle stock with a strike price of $21.00.

Reference no: EM132406969

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