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A call option with an exercise price of $110 has six months to the expiration date....

A call option with an exercise price of $110 has six months to the expiration date.
Currently, the stock is sold at a price of $120. At the expiration date, the underlying stock has
two possible ending prices: $150 or $105. The risk-free rate of return is 8 percent per annum.
Calculate the price of this call option using binomial option pricing model.

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