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Value of a one-month european call option

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Reference no: EM133068901

A stock price is currently $50. It is known that at the end of one month it will be either $55 or $45. The risk-free interest rate is 6% per annum with continuous compounding. What is the value of a one-month European call option with a strike price of $48?

Reference no: EM133068901

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