The price of Time Squared Corp.stock will be either $80 or $95 at the end of the year.Call options are available with one year to expiration.T-bills currently yield 6 percent and the current price of Time Squared Corp.stock is $85.What is the value of a call option if the exercise price is $75 per share?
A) $14.25
B) $15.06
C) $18.78
D) $24.25
E) $25.06
Correct Answer:
Verified
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