What is the value of one call option on winsson stock

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The common stock of Winsson, Inc. is currently priced at $52.50 a share. One year from now, the stock price is expected to be either $54 or $60 a share. The risk-free rate of return is 4 percent. What is the value of one call option on Winsson stock with an exercise price of $55?

Hint: correct answer is $.48

Reference no: EM132724617

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