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What is the value of the call if the strike price

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Question: The price of Ervin Corp. stock will either be $69 or $86 at the end of the year. Call options are available with one year until expiration. Continuously compounded T-bills currently yield 5.59 %. Suppose the current price of Ervin stock is $78.

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Question: What is the value of the call if the strike price is $55 per share?

Reference no: EM132460089

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