Question: Use the hedge-based method to price a call option given the following scenario:The asset is currently selling for $10.Six months from now, the asset will

Use the hedge-based method to price a call option given the following scenario:The asset is currently selling for $10.Six months from now, the asset will be worth either $10 or $15.The strike price on the option is $12.The annual interest rate is 5%.Why is this call price unusually low? Please show all work.

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