Consider a European call option on a non-dividend paying stock with strike price $123 and time...

Consider a European call option on a non-dividend paying stock with strike price $123 and time to expiration 6 months. The stock has a current price of $120 and assume that in six months its price will be either $144 or $108. The risk-free interest rate is 3% per year. Use the risk-neutral valuation approach to find the value of the call option.

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jeff jeffy answered 1 year ago

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