The risk-free rate is currently 28 in one year the price of, Ask an Expert

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The risk-free rate is currently 2.8%. In one year the price of a given share of stock that currently trades at $40 per share is expected to either increase by 8% or decrease by 2%. What is the current value of a call on this stock with exercise price of $40?

$0.00

$1.09

$1.24

$1.49

$1.62

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91380555

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