Consider a call option with a strike price of $65.00 on an underlying priced at $60.00. During

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Consider a call option with a strike price of $65.00 on an underlying priced at $60.00. During the coming period, the underlying could go up by 30% or down by 25%. The risk-free rate is 1.20%.

Using the one-period binomial options pricing model, rounded to the nearest cent, the call premium is $_______________?

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Introduction To Derivatives And Risk Management

ISBN: 9781305104969

10th Edition

Authors: Don M. Chance, Robert Brooks

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Posted Date: Feb 21, 2024 07:31 AM

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Consider a call option with a strike price of $65.00 on an underlying priced at $60.00. During

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Introduction To Derivatives And Risk Management

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