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A one-year call option contract on Cheesy Poofs Company stock sells for $1,600. In one year, the stock will be worth $45 or $65 per

A one-year call option contract on Cheesy Poofs Company stock sells for $1,600. In one year, the stock will be worth $45 or $65 per share. The exercise price on the call option is $60. What is the current value of the stock if the risk-free rate is 5 percent?

Multiple Choice

$121.14

$70.86

$102.58

$106.86

$111.13

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