USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 78

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The current stock price of Zanco Corporation is $50. Zanco Corporation has the following put and call option prices with exercise prices at $45 and $50.

-Refer to Exhibit 14.5. The time premium for the call option with a $50 exercise price is

• A) $0.00.
• B) $1.50.
• C) $1.75.
• D) $4.25.
• E) $9.25.