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Suppose a stock is trading for $25 and a call on the stock with strike price $30 and maturity 6 months is trading for $4.
Suppose a stock is trading for $25 and a call on the stock with strike price $30 and maturity 6 months is trading for $4. The risk free rate is 5%. what should be the price of a security that in 6 month pays either the stock's price at that time or $30, whichever is greater?
18.92
55.37
29.56
33.28
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