What if the strike price is 55 per share can you break down


The price of Ervin Corp. stock will either be $68 or $81 at the end of the year. Call options are available with one year until expiration. Continuously compounded T-bills currently yield 5.04 %. Suppose the current price of Ervin stock is $75.

What if the strike price is $55 per share? Can you break down all the math!

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Finance Basics: What if the strike price is 55 per share can you break down
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