### What is the price of call option on widget shares

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The current spot price of a Widget share is \$48. One year from now the stock price can be either high (\$50 per share) or low (\$46 per share). The annual risk-free interest rate is 10%.

What is the price of a call option on 100 Widget shares, with an exercise price of \$47 and expiration one year from now?

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