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What is the value of the call option for johnsmith

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Reference no: EM132964949

The price of JohnSmith stock will be either $65 or $85 at the end of the year. T-bills  currently yield 5% percent. The current stock price is $62 per share.

Problem a. What is the value of the call option if the exercise price is $50 per share?

Problem b. What is the value of the call option if the exercise price is $60 per share?

Reference no: EM132964949

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