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

---

Definitions:

Frontal Lobes

The part of the brain located at the front of each cerebral hemisphere, responsible for voluntary movement, expressive language, decision making, and regulating social behavior.

Basal Ganglia

A group of structures in the brain involved in the control of voluntary motor movements, procedural learning, habit learning, eye movements, cognition, and emotion.

Limbic System

The Limbic System is a complex set of structures in the brain that deals with emotions and memory. It plays a key role in emotional responses and formation of memories.

Amygdala

A component of the brain's limbic system involved in emotion, particularly fear and pleasure.