This morning,you purchased a call option on Schoolhouse Supply Co.stock that expires in one year.The exercise price is $40.The current price of the stock is $43.40 and the risk-free rate of return is 3.6 percent.Assume the option will finish in the money.What is the current value of the call option?
A) $0
B) $1.49
C) $3.97
D) $4.79
E) $5.46
Correct Answer:
Verified
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