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ABC Company has call option written on its common stock shares. The exercise price for each call option is $30, and the call options expire

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ABC Company has call option written on its common stock shares. The exercise price for each call option is $30, and the call options expire in one year. Each share of ABC Company's common stock can be bought or sold for $2780 a share in today's market. In addition, one year from today the price per share is expected to change to either $28 o share or $34 a share. The Treasury bill rate fie, the risk free tate) is 5 percent per year. Calculate the current value of ABC Company's call option. (HINT. Binomial) Multiple Choice $79 $.92 $ 89 $76 $95

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