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(Solved): IBM stock currently sells for 49 dollars per share. Over 12 months the price will either go by 11.5 ...



IBM stock currently sells for 49 dollars per share. Over 12 months the price will either go by 11.5 percent or down by -7.0 percent. The risk- free rate of interest is 4.5 percent continuously compounded. What is the value of a call option with strike price 51 maturity 12 months?



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