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A stock is selling for $28 today. In 1 year, be worth either $38 (with...

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Finance

A stock is selling for $28 today. In 1 year, be worth either $38 (with 40% probability) or $25 (with 20% probability). If the interest rate is 8%, what is the value today of a one-year call option on the stock with exercise price $30?

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