The price of 3Cube, Inc., stock will be either ($30) or ($50) at the end of the

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The price of 3Cube, Inc., stock will be either $$30$ or $$50$ at the end of the year. Call options are available with one year to expiration. T-bills currently yield 5 percent.

a. Suppose the current price of 3Cube stock is $$35.$ What is the value of the call option if the exercise price is $$15$ per share?

b. Suppose the exercise price is $$40$ in part (a). What is the value of the call option now?

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Fundamentals Of Corporate Finance

ISBN: 9780072313000

5th Edition

Authors: Stephen A Ross, Randolph W Westerfield

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Question Posted: May 24, 2024 06:05 AM

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The price of 3Cube, Inc., stock will be either ($30) or ($50) at the end of the

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Fundamentals Of Corporate Finance

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