A stock is priced at $26.50 and the risk-free rate of return is 3.5 percent annually.Assume a 1-year $20 call will finish in the money.What is the current value of the call option?
A) $6.25
B) $6.50
C) $6.76
D) $7.12
E) $7.18
Correct Answer:
Verified
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