Question: Using the pricing equation a one-year call option contract on Cheesy Poofs Co. stock sells for $1.200. In one year, the stock will be worth

Using the pricing equation a one-year call option contract on Cheesy Poofs Co. stock sells for $1.200. In one year, the stock will be worth $45 or $65 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 9 percent?

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