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What is the value of the call option if the strike price

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Reference no: EM132460084

The price of Ervin Corp. stock will either be $66 or $81 at the end of the year. Call options are available with one year until expiration. Continuously compounded T-bills currently yield 5.33 %. Suppose the current price of Ervin stock is $71.

What is the value of the call option if the strike price is $75 per share?

Reference no: EM132460084

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