You Own a Call Option on Jasper Co

question 7

Multiple Choice

You own a call option on Jasper Co.that expires in one year.The exercise price is €42.50.The current price of the share is €56.00 and the risk-free rate of return is 3.5%.Assume that the option
Will finish in the money.What is the current value of the call option?

• A)€13.04
• B)€13.50
• C)€13.97
• D)€14.94
• E)€15.46

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Definitions:

Java.util

A package in the Java programming language that contains collections of utility classes, including data structures, date and time facilities, and random number generators.

Vector

In programming, a dynamic array that can grow or shrink in size as needed. In mathematics, it represents a quantity having both magnitude and direction.

Empty Vector

A vector data structure that contains no elements and has a size of zero.