The risk-free rate of return is 5 percent what is the


You own one call option with an exercise price of $30 on Nadia stock. This stock is currently selling for $27.80 a share but is expected to increase to either $28 or $34 a share over the next year. The risk-free rate of return is 5 percent. What is the current per share value of your option if it expires in one year?

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Financial Management: The risk-free rate of return is 5 percent what is the
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