Find the price of a call option on the stock

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Reference no: EM131518612

Question: 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. (Hint: Use daily compounding.)

Reference no: EM131518612

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