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There is a two-period zero coupon bond that will pay $10 million at t = 2.At t = 0, a call option on this bond is selling at $225,000.The holder can exercise the option at t = 1 at a price of $9,250,000.The current yield on a riskless zero coupon bond that matures at t = 1 is 8%.It is known that the yield on one-period bonds at t = 1 will be 6% or 10%.All bonds are identical except in maturity.
-What is the payoff to the option holder?
A)$125,875.50
B)$143,676.30
C)$175,876.20
D)$183,962.30
E)$250,000.00

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Use the following information for questions 
There is a two-period zero coupon bond that will pay $10 million at t = 2.At t = 0, a call option on this bond is selling at $225,000.The holder can exercise the option at t = 1 at a price of $9,250,000.The current yield on a riskless zero coupon bond that matures at t = 1 is 8%.It is known that the yield on one-period bonds at t = 1 will be 6% or 10%.All bonds are identical except in maturity.
-What is the payoff to the option holder?
A)$125,875.50
B)$143,676.30
C)$175,876.20
D)$183,962.30
E)$250,000.00

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The Answer of Use the following information for questions 
There is a two-period zero coupon bond that will pay $10 million at t = 2.At t = 0, a call option on this bond is selling at $225,000.The holder can exercise the option at t = 1 at a price of $9,250,000.The current yield on a riskless zero coupon bond that matures at t = 1 is 8%.It is known that the yield on one-period bonds at t = 1 will be 6% or 10%.All bonds are identical except in maturity.
-What is the payoff to the option holder?
A)$125,875.50
B)$143,676.30
C)$175,876.20
D)$183,962.30
E)$250,000.00

Use the Following Information for Questions