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The price of Chive Corp. stock will be either $70 or $90 at the end of the year. Call options are available with one year
| The price of Chive Corp. stock will be either $70 or $90 at the end of the year. Call options are available with one year to expiration. T-bills currently yield 6 percent. |
| Suppose the current price of the company's stock is $75. What is the value of the call option if the exercise price is $65 per share? Suppose the exercise price is $85 in requirement 1. What is the value of the call option now? |
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