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Suppose Corteva Inc ( CTVA ) just issued new shares for $ 6 2 . According to CTVA option information book, the up - size

Suppose Corteva Inc (CTVA) just issued new shares for $62. According to CTVA option information book, the up-size factor is 1.25 each month. Calculate the price of a call option on the stock with an exercise price of $42 and a maturity of two months. Assume the risk-free rate is 3.75%. Employ the risk-neutral valuation method.

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