If the risk-free rate is 4 percent what is the risk-neutral


A stock is currently priced at $54. The stock will either increase or decrease by 10 percent over the next year. There is a call option on the stock with a strike price of $50 and one year until expiration.

If the risk-free rate is 4 percent, what is the risk-neutral value of the call option? (Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).)

Call value $

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Financial Management: If the risk-free rate is 4 percent what is the risk-neutral
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