Question: A stock price is currently $ 5 0 . Over each of the next two 3 - month periods it is expected to goup by

A stock price is currently $50. Over each of the next two 3-month periods it is expected to goup by 6% or down by 5%. The risk-free interest rate is 5% per annum with continuous compounding.What is the value of a 6-month European call option with a strike price of $51?

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