Compute the value of a six-month european call option


Problem

Edd's Jawbreakers Co. stock is selling for $80. In 6 months it will trade for either $100 or $60. The continuous risk-free rate is 10% per year. Compute the value of a 6-month European call option on Edd's Jawbreakers with a strike price of $80.

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Other Subject: Compute the value of a six-month european call option
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