Suppose Randall and arts and company stock is currently selling for $70 per share options exist that permit the holder to buy one share at an exercise price of $65 these options will expire at the end of 1 year when the options expire Randall and arts Inc. stocks will either be selling for $85 or $45 what is the range of Randall and arts Inc. Ending stock prices

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 14P
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Suppose Randall and arts and company stock is currently selling for $70 per share options exist that permit the holder to buy one share at an exercise price of $65 these options will expire at the end of 1 year when the options expire Randall and arts Inc. stocks will either be selling for $85 or $45 what is the range of Randall and arts Inc. Ending stock prices
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