A stock is currently priced at $53.80 a share.One year from now,the stock price is expected to be either $54 or $59 a share.The risk-free rate of return is 2 percent.What is the value of a 1-year call option with an exercise price of $55?
A) $) 75
B) $) 81
C) $) 45
D) $) 69
E) $) 51
Correct Answer:
Verified
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