Beta Company’s equity is currently selling for Rs.` 60. In a year from now it can rise or fall. On the downside it may fall to Rs. 45. The call option on Beta’s equity has a value of Rs. 5. If the...

Beta Company’s equity is currently selling for Rs.` 60. In a year from now it can rise or fall. On the downside it may fall to Rs. 45. The call option on Beta’s equity has a value of Rs. 5. If the interest rate is 16 percent, to what level would Beta’s equity rise on the upside? Assume that

the excise price is Rs. 60.