Learn Corp. (Ticker: LC), an education technology company, is considered to be one of the least risky companies in the education sector. Investors trade call options for Leam Corp., whose stock is currently trading at $50.00. Suppose you are interested in buying a call option with a strike price of $40.00 that expires in 6 months. (Assume that you get the option for free!) Based on speculations and probability analysis, you compute and collect the following information for your price analysis of the option: For LC's options, time until expiration (1) is taken as 0.50 year (6 months/12 months). LC's stock could go up by a factor of 1.80 (u). LC's stock could dedine by a factor of 0.90 (d). the option, your payoff would be $10.00 . Therefore, if the option At this time, LC's stock price is is in the money, you should in the money exercise the option es and the payoff in both situations. Calculate the ending stock price of Learn Corp. for both possible ou Price Increases Stock price P(u) Payoff Co Price Decreases Stock price P(d) Payoff Cd onerata Investors use options and stocks, based on the range in which a stock is likely to go up or go down to create portfolios that help them o e Mind Top - Cangas