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A 1-year European call option is modeled with a 1-period binomial tree with u = 1.2, d = 0.7.

A 1-year European call option is modeled with a 1-period binomial tree with u = 1.2, d = 0.7. The stock price is 50. The strike price is 55. The stock pays no dividends. The call premium is 3.10. σ = 0.25.Determine the risk-free rate

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