A one-year call option contract on Cheesy Poofs Co. stock sells for $925. In one year, the

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A one-year call option contract on Cheesy Poofs Co. stock sells for $925. In one year, the stock will be worth $47 or $68 per share. The exercise price on the call option is $60. What is the current value of the stock if the risk-free rate is 3 percent?
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Fundamentals of Corporate Finance

ISBN: 978-0077861704

11th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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