Using the information in Problem 3, calculate the risk-neutral probabilities. Then use them to price the option.

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Corporate Finance

ISBN: 978-0133097894

3rd edition

Authors: Jonathan Berk and Peter DeMarzo

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Question Posted: Aug 06, 2014 07:40 AM

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Using the information in Problem 3, calculate the risk-neutral probabilities. Then use them to price the option.

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The value of the call is therefore ...View the full answer

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