Question: please show step by step of the solution. 13.1. A stock price is currently $40. It is known that at the end of 1 month

please show step by step of the solution.

13.1. A stock price is currently $40. It is known that at the end of 1 month it will be either $42 or $38. The risk- free interest rate is 8% per annum with continuous compounding. What is the value of a 1-month European call option with a strike price of $39

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