What is the value of the call

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Reference no: EM132177176

Question - The price of Ervin Corp. stock will either be $65 or $89 at the end of the year. Call options are available with one year until expiration. Continuously compounded T-bills currently yield 2.58%. Suppose the current price of Ervin stock is $74. What is the value of the call if the strike price is $55 per share?

Reference no: EM132177176

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