You Own a Call Option on Jasper Co

question 33

Multiple Choice

You own a call option on Jasper Co. stock that expires in one year. The exercise price is $42.50. The current price of the stock is $56.00 and the risk-free rate of return is 3.5%. Assume that the option will finish in the money. What is the current value of the call option?

• A) $13.04
• B) $13.50
• C) $13.97
• D) $14.94
• E) $15.46

---

Definitions:

Geographic Isolation

A form of reproductive isolation in which two populations are separated by physical barriers, leading to the development of distinct species.

Rapid Evolutionary Change

A process where species undergo significant alterations in their genetic makeup over relatively short geological periods, often in response to dramatic environmental shifts.

Midrange Forms

Species or variations within species that exhibit characteristics or traits intermediate between two distinct groups, reflecting evolutionary or genetic transitions.

Trait

A distinct characteristic or attribute of an organism that can be passed from one generation to the next through genetic inheritance.