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Cassiopeia inc. is currently trading at $100 per share. After examining the stock of Cassiopeia, you...

Cassiopeia inc. is currently trading at $100 per share. After examining the stock of Cassiopeia, you have determined that in each 3 month period its price will either increase to 25% or decrease by 20%. The interest rate is 3% every 3 months. A six month European call option on Cassiopeia has an exercise price of $90. What is the value of this call option?

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jeff jeffy answered 2 years ago
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