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Business valuation 6. Shares in stock A are currently trading at $10 and are expected to be worth either $30 or $5 next year. An

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Business valuation

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6. Shares in stock A are currently trading at $10 and are expected to be worth either $30 or $5 next year. An atthemoney European call option on stock A expiring next year is currently trading at $6. The oneyear riskfree interest rate is equal to: (a) 100%. (b) 50%. (c) 25%. (d) 0%

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