A stock has a beginning market value of $75. It can either increase in value 20% each year or decrease in value by 20%. A 3-year European call option written on the stock has an exercise price of $75. The risk-free rate of return is 5% per year. What is the current equilibrium price of the call option (Co) if you maintain a riskless portfolio by readjusting your relative positions in stocks and puts at the end of each year
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