The common stock of Hazelton Refiners is selling for $56.10 a share. U.S. Treasury bills are currently yielding 3.4 percent. What is the current value of a one-year call option on this stock if the exercise price is $55 and you assume the option will finish in the money?
A) $0
B) $3.74
C) $2.57
D) $3.18
E) $2.91
Correct Answer:
Verified
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