Bruno's stock is currently selling for $27.80 a share but is expected to increase to either $28 or $34 a share over the next year.The risk-free rate is 4 percent.What is the current value of a 1-year call option with an exercise price of $30?
A) $.58
B) $1.26
C) $.94
D) $.89
E) $1.32
Correct Answer:
Verified
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