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Basic Question 0 of 7

Assume a stock price is $55 and that in the next year it will either rise by 20% or fall by 16%. The risk-free interest rate is 5%. A call option on this stock has an exercise price of $60. What is the price of a call option that expires in one year?

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Learning Outcome Statements

explain the financial reporting of leases from the perspectives of lessors and lessees

CFA® 2025 Level I Curriculum, Volume 2, Module 8.