If the risk-free rate is 4 percent per year calculate the


A stock currently sells for $36. In the next six months, the stock will either go up to $42 or it will fall to $31.

If the risk-free rate is 4 percent per year, calculate the current market price of a call option on this stock, with an expiration date in six months and a strike price of $35.

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Financial Management: If the risk-free rate is 4 percent per year calculate the
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