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You try to price an at-the- money call on albert corp stock


Albert Corp. stock is current trading at $200 per share. You try to price an at-the- money call on Albert Corp. stock with one year expiration using one-period binomial model. You believe that Albert Corp’s stock will either double or cut by half in a year. If the borrowing rate is 5% per year, what should be the price of the call option? plz be specifc as much as you can , write the formulas also.

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Financial Management: You try to price an at-the- money call on albert corp stock
Reference No:- TGS02719434

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