What Is the Call Option Premium Given the Following Information

question 74

Multiple Choice

What is the call option premium given the following information?
$\begin{array}{lrr} \text { Stock price } &\$45.00\\ \text { Strike price } &\$40.00\\ \text { Volatility } &35\%\\ \text {Dividend Yield } &0\\ \text { Time (years) } &.50\\ \text { Risk-free Rate } &3.50\%\\\end{array}$

• A)$4.63
• B)$5.28
• C)$6.39
• D)$7.60
• E)$8.66

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