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Fitbit's stock is currently selling for $42.00 a share but is expected to decrease to either...

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Finance

Fitbit's stock is currently selling for $42.00 a share but isexpected to decrease to either $37.80 or increase to $46.20 a shareover the next year. The risk-free rate is 3 percent. What is thecurrent value of a 1-year call option with an exercise price of$42?

$2.45

$2.65

$2.85

$3.05

$3.25

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Fitbit's stock is currently selling for $42.00 a share but isexpected to decrease to either $37.80 or increase to $46.20 a shareover the next year. The risk-free rate is 3 percent. What is thecurrent value of a 1-year call option with an exercise price of$42?$2.45$2.65$2.85$3.05$3.25

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