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Stock of Apple is currently selling at $200. Suppose in the next 12 months it can...

Stock of Apple is currently selling at $200. Suppose in the next 12 months it can increase by 10% or decrease by 5%. The risk-free interest rate is 1% per year. Using the one period binomial option pricing model, which of the following is closest to the value a European call option with strike price of $205 and time to maturity of one year.

a) $4

b) $5

c) $6

d) $7

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