Woodbridge's stock is currently selling for $26.00 a share but is expected to decrease to either...

Woodbridge's stock is currently selling for $26.00 a share but is expected to decrease to either $23.40 or increase to $28.60 a share over the next year. The risk-free rate is 3 percent. What is the current value of a 1-year call option with an exercise price of $26?

		$1.50
		$1.64
		$1.72
		$1.86
		$2.02

Expert Solution

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jeff jeffy answered 7 months ago

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