1. 24.1 Value of a call option Shares in the Timber Creek Corporation are currently selling for...

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1. 24.1 Value of a call option Shares in the Timber Creek Corporation are currently selling for $25 per share. In one year, the price will be either

$20 or $30. Treasury notes with one year to maturity are paying 10 per cent. What is the value of a call option with a $20 exercise price? A

$26 exercise price?

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