Assume the Following American Call Option Will fiNish In-The-Money: the Exercise

question 27

Multiple Choice

Assume the following American call option will finish in-the-money: the exercise price is $75, maturity is one year, current stock price is $72.50, and the risk-free interest rate is 6%. What is the
Value of the call option?

• A) -$6.60
• B) $0.00
• C) $1.75
• D) $2.15
• E) $2.65

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Definitions:

Microorganism

A microscopic organism, such as a bacteria, virus, or fungus, that can be found in a wide range of environments.

DNA Segment

A specific sequence of DNA within a chromosome characterized by a particular function or genetic information.

Reverse Transcription

The process by which the information contained in RNA molecules is transcribed into DNA molecules.

DNA Ligase

An agent that supports the unification of DNA strands by enabling the production of a phosphodiester bond.