A one-year call option contract on Cheesy Poofs Co. stock sells for ($1,800.) In one year, the

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A one-year call option contract on Cheesy Poofs Co. stock sells for \($1,800.\) In one year, the stock will be worth \($30\) or \($50\) per share. The exercise price on the call option is \($35.\) What is the current value of the stock if the risk-free rate is 5 percent?

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Fundamentals Of Corporate Finance

ISBN: 9780072313000

5th Edition

Authors: Stephen A Ross, Randolph W Westerfield

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