Investors can borrow and lend at 12 suppose the current, Financial Management

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Investors can borrow and lend at 12 suppose the current

The price of Wabash Corporation common stock will be either $25 or $40 at the end of the year. A standard call option contract for the purchase of Wabash stock has an expiration date in one year.

Investors can borrow and lend at 12%. Suppose the current price of Wabash stock is $30 and that the exercise price of the call is $35.

What are the possible per share values of the call contract on the expiration date?

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Financial Management: Investors can borrow and lend at 12 suppose the current

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