Question: Question 22 (3 points) The current price of a stock that does not pay dividends is $43. The risk-free rate is 4.7%. If one expects
Question 22 (3 points) The current price of a stock that does not pay dividends is $43. The risk-free rate is 4.7%. If one expects the price to either go up to $51 or go down to $32 with equal probabilities a year from now, what is the price of a European call option that expires a year from now and has the strike price of $39. Your
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