What if the strike price is $55 per share

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The price of Ervin Corp. stock will either be $68 or $81 at the end of the year. Call options are available with one year until expiration. Continuously compounded T-bills currently yield 5.04 %. Suppose the current price of Ervin stock is $75.

What if the strike price is $55 per share? Can you break down all the math!

Reference no: EM131848750

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