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The Common Stock of WIN Is Currently Priced at $52

Question 100

Multiple Choice

The common stock of WIN is currently priced at $52.50 a share.One year from now,the stock price is expected to be either $54 or $60 a share.The risk-free rate of return is 4 percent.What is the per share value of one call option on WIN stock with an exercise price of $55?


A) $.39
B) $.41
C) $.45
D) $.48
E) $.51

Correct Answer:

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