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Question 1 Consider a stock that sells for $52. In 1 year it will be worth either $60 or $40. The risk-free rate is 0%.

Question 1

Consider a stock that sells for $52. In 1 year it will be worth either $60 or $40. The risk-free rate is 0%. What is the value of a call option with a $52 exercise price?

		$5.00
		$2.50
		$1.60
		$3.60
		$4.80

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