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The price of Ervin Corp. stock will either be $69 or $86 at the end of the year. Call options are available with one year
The price of Ervin Corp. stock will either be $69 or $86 at the end of the year. Call options are available with one year until expiration. Continuously compounded T-bills currently yield 5.59 %. Suppose the current price of Ervin stock is $78. What is the value of the call if the strike price is $55 per share?
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