You currently own a one-year call option on Rail Company,Inc.,stock.The current stock price is $52.75 and the risk-free rate of return is 4.25 percent.Your option has a strike price of $50 and you assume the option will finish in the money.What is the current value of your call option?
A) $1.20
B) $2.59
C) $4.79
D) $5.13
E) $7.27
Correct Answer:
Verified
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