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QUESTION 50 The stock price for ICE is $80 per share today. Suppose that a year from now the stock is worth either $110 or

QUESTION 50

The stock price for ICE is $80 per share today. Suppose that a year from now the stock is worth either $110 or $50. Assume that the risk-free rate between today and a year from now is 5% annually. What is the value of this call option on this stock if the strike price equals $80?

a. $30.00.

b. $20.00.

c. $18.34.

d. $16.81.

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