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The price of Prime Oil and Gas stock will be either $72 or $55 at the end of the year. Call options are available with
The price of Prime Oil and Gas stock will be either $72 or $55 at the end of the year. Call options are available with one year to expiration.Continuously compoundedT-bills currently yield 2.56%. Suppose the current price of Prime Oil and Gas stock is $63.
What is the value of the call option if the strike price is $65 per share?(Round answer to 2 decimal places, do not round intermediate calculations)
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