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) $3.63
• B) $4.28
• C) $5.39
• D) $5.71
• E) $6.66

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Definitions:

Machinery

Equipment or devices that perform specific tasks, often used in production and manufacturing processes.

Cash

A form of currency that includes coins and paper notes, used as a medium of exchange for goods and services.

Fixed Asset Turnover

A financial ratio that measures a company's efficiency in using its fixed assets to generate sales.

Generating Sales

The process of creating revenue for a company through selling goods or services.