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The current price of a stock is $50. In one year, the price will be either $40 or $70. The annual risk-free rate is 4%.

The current price of a stock is $50. In one year, the price will be either $40 or $70. The annual risk-free rate is 4%. The stock has an exercise price of $65 and expires in one year. Find the range of values for the ending stock price in 1 year. $ Find the range of values for the call option at the option's expiration in 1 year. $ Equalize the range of payoffs for the stock and the option. (Round your answer to two decimal places) The ratio of ending price to ending stock value is $ Create a riskless hedged investment. (Round your answer to two decimal places) Portfolio value is $ What is the cost of the stock in the riskless portfolio? (Round your answer to two decimal places) $ What is the present value of the riskless portfolio? (Round your answer to two decimal places.) $ From your answers in Parts d and e, what is the value of the firm's call option? (Round your answer to two decimal places.) $

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