As a finance manager in a company, you considering purchasing a call option on the stock of Crude Oil Company. Currently

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As a finance manager in a company, you considering purchasing a call option on the stock of Crude Oil Company. Currently

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As A Finance Manager In A Company You Considering Purchasing A Call Option On The Stock Of Crude Oil Company Currently 1
As A Finance Manager In A Company You Considering Purchasing A Call Option On The Stock Of Crude Oil Company Currently 1 (25.86 KiB) Viewed 16 times
As a finance manager in a company, you considering purchasing a call option on the stock of Crude Oil Company. Currently Crude Oil Company stock trades for $700 per share, and you predict that its price will be either $500 or $1000 in one year. The call option would enable you to buy a share of Crude Oil Company stock in one year for $600. What is this option worth if the risk-free rate is 5%?
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