What Is the Call Option Premium Given the Following Information

question 2

Multiple Choice

What is the call option premium given the following information?

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

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Definitions:

Contract Settled

A term referring to the finalization or resolution of terms and conditions within a contractual agreement, often between employers and employees or between service providers and clients.

Economic Hardship

A situation where an individual or community suffers from a decline in financial stability or income, potentially leading to poverty or deficiency in meeting basic needs.

Corporate Campaigns

Coordinated efforts by labor unions or activist groups to pressure a corporation into meeting certain demands, often involving public relations, legal challenges, and direct action.

Offensive Lockouts

A strategy used by employers to pressure a union by temporarily closing the workplace to prevent employees from working.