Fitbit's stock is currently selling for $42.00 a share but is expected to decrease to either...

Fitbit's stock is currently selling for $42.00 a share but is expected to decrease to either $37.80 or increase to $46.20 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 $42?

		$2.45
		$2.65
		$2.85
		$3.05
		$3.25

Expert Solution

jeff jeffy answered 1 year ago

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