You Currently Own a One-Year Call Option on Way-One

question 19

Multiple Choice

You currently own a one-year call option on Way-One.The current share price is €26.50 and the risk-free rate of return is 4%.Your option has a strike price of €20 and you assume that it will finish
In the money.What is the current value of your call option?

• A)€6.25
• B)€6.50
• C)€6.76
• D)€7.13
• E)€7.27

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Definitions:

Traditional Retail Outlets

Physical stores that sell products directly to customers in a face-to-face environment, as opposed to online or digital channels.

Channel Focus

A business approach that emphasizes optimizing and prioritizing marketing and distribution through specific channels to reach the target audience effectively.

Food Retailers

Businesses that sell food directly to consumers, including supermarkets, grocery stores, and specialty food shops.

General Merchandise Retailers

Retail stores that sell a wide variety of products across different categories, often including clothing, home goods, and food items.