The ordinary shares of Mercury Motors is selling for €43.90 a share.Treasury bills are currently yielding 4.5%.What is the current value of a one-year call option on Mercury Motors if the exercise
Price is €37.50 and you assume the option will finish in the money?
A) €6.12
B) €6.40
C) €6.69
D) €7.67
E) €8.01
Correct Answer:
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