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This is the second question You would like to buy a calloption that matures in one year with a strike price of $50 on Nichol's
This is the second question
You would like to buy a calloption that matures in one year with a strike price of $50 on Nichol's Nectars, a honey manufacturer. You lookonline and seethestock currently trades for $56. You alsoseethe return ona 1 year government bond is 3% and aput with a strike price of $50 currently trades at a price of $22.93. How much must thecall option on Nichol's Nectar be worth today? (please round your answer to the nearest penny)
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