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A stock with a current price of $25 will either move up to $32 or down to $20 over the next period. The risk-free rate of interest is 3.5%. What is the value of the call option with a strike price of $30?
a) $0.61
b) $0.72
c) $0.93
d) $1.11
e) $1.36
Basic Finance, Finance
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