Question: 1. E = $105, P0 = $100, rf = 20%. Stock will be either $110 or $130 in a year. What is the value of

1. E = $105, P0 = $100, rf = 20%. Stock will be either $110 or $130 in a year. What is the value of Call?

2. E = $90, S0 = $100, rf = 5%. Stock price will be either 20% up or 20% down in a year. What is the call option price?

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