Question: 8. 100 points value You are attempting to value a call option with an exercise price of $80 and one year to expiration. The underlying

 8. 100 points value You are attempting to value a call

8. 100 points value You are attempting to value a call option with an exercise price of $80 and one year to expiration. The underlying stock pays no dividends, its current price is $80, and you believe it has a 50% chance of increasing to $90 and a 50% chance of decreasing toS7DTI henskfiee rate of interest is 5%. Based upon your assumptions, calculate your estimate of the the call option's value using the two-state stock price model. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Value of the call 4.76 References eBook & Resources Learning Objective: 16-02 Compute an option value in two-scenario and binomial models of the economy Worksheet Check my work

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