Shares of a stock are currently priced at $61. The future price is estimated at either $52 or $62. The risk-free rate of return is 4%. What is the value of a twelve-month call option with a strike price of $55?
A) $5.48
B) $6.00
C) $6.19
D) $7.70
E) $12.00

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The Answer of Shares of a stock are currently priced at $61. The future price is estimated at either $52 or $62. The risk-free rate of return is 4%. What is the value of a twelve-month call option with a strike price of $55?
A) $5.48
B) $6.00
C) $6.19
D) $7.70
E) $12.00

Shares of a Stock Are Currently Priced at $61