You Currently Own a One-Year Call Option on Mayer Industries

question 197

Multiple Choice

You currently own a one-year call option on Mayer Industries stock. The current stock price is $37.18 and the risk-free rate of return is 4.5 percent. Your option has a strike price of $32.50 and you
Assume that it will finish in the money. What is the current value of your call option?

• A) $4.49
• B) $4.68
• C) $4.89
• D) $5.82
• E) $6.08

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