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Southern Company (SO) stock is currently at $54. It is expected to rise 9% or fall 7% in each of two 3-month periods. Suppose it
Southern Company (SO) stock is currently at $54. It is expected to rise 9% or fall 7% in each of two 3-month periods. Suppose it rises 9% during both periods. The risk-free interest rate is .5% per 3 month period. What is the payoff value of a call option contract with an exercise price of $54 at the end of the 6-month period?
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