What Is the Call Option Premium Given the Following Information

question 2

Multiple Choice

What is the call option premium given the following information?
$$\begin{array} { l } \text { Stack price }&\$47 \\\text {Strike price } &\$40\\\text { Standard deviation }&44\% \\\text { Risk-free rate } &4\%\\\text { Dividend yield }&0\% \\\text { Time (years) }&.25\end{array}$$

• A)$7.16
• B)$7.78
• C)$8.58
• D)$9.03
• E)$9.49

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Distressful

Causing anxiety, sorrow or pain; emotionally distressing.

Dysfunctional

Referring to an abnormal or impaired functioning in individuals or systems, often leading to negative consequences.

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The practice of identifying and classifying mental health conditions by their symptoms and behavioral aspects.

Psychologically Disordered

Referring to a pattern of behavioral or psychological symptoms that impact multiple areas of life and create distress for the person affected.