You Own a Call Option on Jasper Co

question 11

Multiple Choice

You own a call option on Jasper Co.that expires in one year.The exercise price is €42.50.The current price of the share 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

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Definitions:

Bipedalism

The ability to walk upright on two legs, a key distinguishing feature of humans and our ancestors.

Arched Feet

A foot structure characterized by a pronounced curve along the inside of the sole, which typically enhances balance and support.

Opposable Big Toe

A distinct anatomical feature where the big toe can touch the other toes, aiding in gripping and manipulation of objects, seen in some primates.

Hominoid Fossil

Ancient remains or imprints of hominids and apes, crucial for understanding human evolution and the lineage of primates.