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The common stock of Westover Foods is currently priced at $29.10 a share. One year from now, the stock price is expected to be either
The common stock of Westover Foods is currently priced at $29.10 a share. One year from now, the stock price is expected to be either $27 or $33 a share. The risk-free rate of return is 2.8 percent. What is the current value of one call option on this stock if the exercise price is $30? A. $0 B. $1.42 C. $3.00 D. $.79 E. $2.83
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