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The price of Cilantro, Inc., stock will be either $60 or $80 at the end of the year. Call options are available with one year
The price of Cilantro, Inc., stock will be either $60 or $80 at the end of the year. Call options are available with one year to expiration. T-bills currently yield 5 percent. Suppose the current price of the company's stock is $70. What is the value of the call option if the exercise price is $50 per share? Suppose the exercise price is $70 in requirement 1. What is the value of the call option now
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