The stock of Larkspur is currently trading for $40 and will either rise to $49...
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The stock of Larkspur is currently trading for $40 and will either rise to $49 or fall to $36 in one month. The risk-free rate for one month is 1.5 percent. What is the value of a one-month call option with a strike price of $40? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25.) Value of a call option is $ 3.02
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