A share of stock is currently priced at $20 and will change with equal likelihood to either $50 or $10.A call option with a $25 exercise price is available on the stock.How many shares of stock must be purchased to replicate the payoff from owning one call option?
A)$.50 shares
B)$.75 shares
C)$.80 shares
D)$1.25 shares Given the possible range of stock values, the option can range in price from $25 to $0.Then,

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The Answer of A share of stock is currently priced at $20 and will change with equal likelihood to either $50 or $10.A call option with a $25 exercise price is available on the stock.How many shares of stock must be purchased to replicate the payoff from owning one call option?
A)$.50 shares
B)$.75 shares
C)$.80 shares
D)$1.25 shares Given the possible range of stock values, the option can range in price from $25 to $0.Then,

A Share of Stock Is Currently Priced at $20 and Will