Question: A fx Accessibility tab B C D F A one-year call option contract on Cheesy Poofs Co. stock sells for $725. In one year,

A fx Accessibility tab B C D F A one-year call option

A fx Accessibility tab B C D F A one-year call option contract on Cheesy Poofs Co. stock sells for $725. In one year, the stock will be worth 2 $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 percent? 4 Input Area: 5 6 Call contract price $725 7 Stock price $64 8 Stock price $81 9 Exercise price $70 3% + G H K 10 Risk-free rate 11 12 (Use cells A6 to B10 from the given information to complete this question. You may enter a constant as a hard coded value.) 13 14 Output Area: 15 16 Call price 17 Stock price 18 19 20 21 Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your v 22 Nothing in this area will be graded, but it will be submitted with your assignment. 23 24

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