
This morning, you purchased a call option on School house Supply Co. stock that expires in one year. The exercise price is $37.50. The current price of the stock is $37.60 and the risk-free rate of return is 3.1 percent. Assume the option will finish in the money. What is the current value of the call option?
A) $0
B) $.95
C) $.10
D) $1.23
E) $1.09
Correct Answer:
Verified
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