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The current price of a non-dividend-paying stock is 30 over

The current price of a non-dividend-paying stock is $30. Over the next six months it is expected to rise to $36 or fall to $26. Assume the risk-free rate is zero. An investor sells call options with a strike price of $32. What is the value of each call option? Explain your answer in detail.

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Finance Basics: The current price of a non-dividend-paying stock is 30 over

Reference No:- TGS02160185

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