Calculate the price of the call contract per share

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Reference no: EM132058831

Assume there exists a call option on XYZ stock. at expiration the price of the stock will either be $50 or $80. Assume the stock is presntly selling for $55 and the invest price is $55. If the risk-free rate = 8.5%, calculate the price of the call contract per share.

Reference no: EM132058831

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