Solution for QID #2182: The price of Ervin Corp. stock will either be $65 or $89 at | StudyHelpMe

Subject: Finance
Status: Made to Order
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).
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