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Question
A stock with a current price of $25 will either move up to $32 or down to $20 over the next period. The risk-free rate of interest is 3.5 percent. What is the value of a call option with a strike price of $30?A. $0.61
B. $0.72
C. $0.93
D. $1.11
E. $1.36
Answer
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