Question: Consider a binormal model for option prices. We have a long position of 0.5 number of shares in the portfolio and a short position in

Consider a binormal model for option prices. We have a long position of 0.5 number of shares in the portfolio and a short position in one call option. The value of the risk-less portfolio today is $7 and price of one share of stock today is $30. What is the price of the option today?(show your work)

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