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8. The price of Ervin Corp. stock will be either $75 or $95 at the end of the year. The current stock price is 80$.
8. The price of Ervin Corp. stock will be either $75 or $95 at the end of the year. The current stock price is 80$. What is the price of a call option with the exercise price of $85 if the risk free rate is 10%? a. $11.82 b. $5.91 c. $2.96 d. $2.43 e. $2.20
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