You Currently Own a One-Year Call Option on WOI Stock

question 72

Multiple Choice

You currently own a one-year call option on WOI stock with a strike price of $20.The current stock price is $22.10 and the risk-free rate of return is 3.75 percent.If you assume the option finishes in the money,what is the current value of your call option per share?

• A)$2.02
• B)$2.18
• C)$1.76
• D)$3.13
• E)$2.82

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Definitions:

Intelligent Behavior

Intelligent behavior refers to actions or responses that show an understanding, reasoning, learning, and adaptation to complex situations.

Prosencephalon

The embryonic structure that develops into the forebrain, encompassing regions responsible for complex cognitive, sensory, and motor functions.

Front Brain

Refers to the frontal lobes of the brain, responsible for executive functions such as decision-making, planning, social behavior, and impulse control.

Telencephalon

The largest part of the brain, encompassing the cerebral cortex and several subcortical structures, responsible for complex sensory and neural functions.