A stock selling for 25 today will in 1 year be worth either, Finance Basics

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A stock selling for 25 today will in 1 year be worth either

Question: A stock selling for $25 today will, in 1 year, be worth either $35 or $20. If the interest rate is 8%, what is the value today of a one-year call option on the stock with exercise price $30? Use the simultaneous equation approach to price the option.

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Finance Basics: A stock selling for 25 today will in 1 year be worth either

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