What Is the Call Option Premium Given the Following Information

question 60

Multiple Choice

What is the call option premium given the following information?

• A) $3.91
• B) $4.28
• C) $4.71
• D) $4.90
• E) $5.13

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Definitions:

Price-Fixing

An illegal agreement among competitors to maintain prices at a certain level, preventing competition.

Antitrust Laws

Laws designed to promote competition and prevent monopolies, thereby protecting consumers from unfair business practices and ensuring a variety of goods and services in the market.

Sherman Act

A foundational antitrust law in the United States that outlaws monopolistic practices and promotes competitive markets.

Clayton Act

A U.S. legislation enacted in 1914 aimed at promoting competition among businesses by prohibiting certain practices that would lead to antitrust issues.