We are looking at two call options on the same share, one with an exercise price of
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We are looking at two call options on the same share, one with an exercise price of $20 and one with an exercise price of $30. The share currently sells for $35. Its future price will be either $25 or $50. If the risk-free rate is 10 per cent, what are the values of these call options?
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781743768051
8th Edition
Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan
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