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Agritech's stock is currently selling for $45.00 a share but is expected to decrease to either $40.50 or increase to $49.50 a share over the
Agritech's stock is currently selling for $45.00 a share but is expected to decrease to either $40.50 or increase to $49.50 a share over the next year. The risk-free rate is 3 percent. What is the current value of a 1-year call option with an exercise price of $45?
$2.84 | ||
$2.62 | ||
$2.48 | ||
$2.26 | ||
$3.04 |
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