Question: Problem 2 4 - 6 Using the Pricing Equation [ LO 2 ] A one - year call option contract on Cheesy Poofs Company stock

Problem 24-6 Using the Pricing Equation [LO2]
A one-year call option contract on Cheesy Poofs Company stock sells for $1,340. In one year, the stock will be worth $66 or $87 per share. The exercise price on the call option is $79. What is the current value of the stock if the risk-free rate is 2 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.)
Current stock value
Problem 24-6 Using the Pricing Equation [LO2] A one-year call option

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