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The price of Ervin Corp. stock will be either 63 or 77 at the end of the year. Call options are available with one year
The price of Ervin Corp. stock will be either 63 or 77 at the end of the year. Call options are available with one year to expiration. T-bill currently yield 4 percent. The current price of the stock is $68
What is the value of the call option if the exercise price is $60 per share?
What is the value of the call option if the exercise price is $70 per share?
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