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Question
Albert has accepted a wager to receive $5.00 if the price of Will Co. is above $35.00 per share. This right only exists if Will Co. drops below $33.00 sometime over the coming 100 days. Currently, Will Co. stock price is $38.24, r = 0.05, σ = 0.33, and div = 0. What is the value of Albert's position?A) $0.35
B) $0.25
C) $0.15
D) $0.05
Answer
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