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Question 1: (25 Marks) By assuming the following data: One year to maturity. A $90 exercise price. A current stock price of $85. A one-year

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Question 1: (25 Marks) By assuming the following data: One year to maturity. A $90 exercise price. A current stock price of $85. A one-year risk-free rate, r, of 12 percent The call Option is certain to finish in the money Price of a similar PUT option is 0. . A). Calculate the price of a Call Option. Show your formula and calculations

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