question archive The price of Ervin Corp
The price of Ervin Corp
Subject:FinancePrice: Bought3
The price of Ervin Corp. stock will either be $65 or $89 at the end of the year. Call options are available with one year until expiration. Continuously compounded T-bills currently yield 3.46 %. Suppose the current price of Ervin stock is $79.
What is the value of the call option if the strike price is $75 per share? (Round answer to 2 decimal places. Do not round intermediate calculations).
