Question: Problem 3 . 3 A stock price is currently $ 5 0 . It is known that at the end of 6 months it will

Problem 3.3
A stock price is currently $50. It is known that at the end of 6 months it will be either $55 or $45. The risk-free rate of interest with continuous compounding is 5% per annum. Calculate the value of a 12-month European call option on the stock with an exercise price K=$52.
Problem 3 . 3 A stock price is currently $ 5 0 .

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