A stock is currently priced at $52. The stock will either increase or decrease by 15...

A stock is currently priced at $52. The stock will either increase or decrease by 15 percent over the next year. There is a call option on the stock with a strike price of $50 and one year until expiration.

If the risk-free rate is 3 percent, what is the risk-neutral value of the call option? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Call value

$

Expert Solution

jeff jeffy answered 7 months ago

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