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The price of Profile, Inc., stock will be either $66 or $88 at the end of the year. Call options are available with one year
The price of Profile, Inc., stock will be either $66 or $88 at the end of the year. Call options are available with one year to expiration. T-bills currently yield 5 percent. 0.5 points a. Suppose the current price of the stock is $77. What is the value of the call option If the exercise price is $62 per share? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) b. Suppose the current price of the stock is $77. What is the value of the call option if the exercise price is $72 per share? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) ebook Pent a. b. Call value Call value Cal value References
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