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  3. 6. [call option value] a one-year call option cont

6. [Call option value] A one-year call option contract on SUNNY Co. stock sells for...

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Finance

6. [Call option value] A one-year call option contract on SUNNY Co. stock sells for $845. In one year, the stock will be worth $64 or $81 per share. The exercise price on the call option is $70. What is the current value of the stock if the risk-free rate is 3%? (Note that one contract involves 100 shares of stock)

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