T-bills currently yield 6.3 percent. Stock in Pinta Manufacturing is currently selling for $46 per share. There is no possibility that the stock will be worth less than $39 per share in one year. What is the value of a call option on this stock if the exercise price is $22 per share?
A) $21.40
B) $22.00
C) $24.00
D) $25.30
E) $25.70
Correct Answer:
Verified
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