What Is the Call Option Premium Given the Following Information

question 49

Multiple Choice

What is the call option premium given the following information?

• A)$1.86
• B)$2.20
• C)$2.36
• D)$2.98
• E)$3.30

---

Definitions:

Middle East

A transcontinental region in Afro-Eurasia spanning Western Asia and a part of North Africa, known for its historical, cultural, and political significance.

Price Elasticity of Supply

A measure of how much the quantity supplied of a good responds to a change in the price of that good, symbolized as a percentage change.

Total Revenue Test

A method used to assess the elasticity of demand by observing changes in total revenue following a price change.

Quantity Supplied

The actual amount of a good or service producers are willing to sell at some specific price.