Calculate the value of a three-month european call option, HR Management

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Calculate the value of a three-month european call option

Problem

A stock price is currently $50. It is known that at the end of 3 months it will be either $54 or $48. The risk-free interest rate is 12% per annum with continuous compounding. Using the binomial option pricing method, calculate the value of a 3-month European call option with a strike price of $52.

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