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The risk free rate is 5 use the binomial option pricing

The one year call optin on Apple's stock has an exercise price of 45. The current value of Apple is 47. On the maturity date, the value of Apple will be either 51 or 42. The risk free rate is 5%. Use the binomial option pricing model to find a fair value for the call option.

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Finance Basics: The risk free rate is 5 use the binomial option pricing

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