Calculate the Price of a Call Option Using the Black

question 90

Multiple Choice

Calculate the price of a call option using the Black Scholes model and the following data: stock price = $47.30, exercise price = $50, time to expiration = 85 days, risk-free rate = 3%, standard deviation = 35%.

• A) $1.11
• B) $2.22
• C) $3.33
• D) $4.44

---

Definitions:

Glucose

A simple sugar that is an important energy source in living organisms and is a component of many carbohydrates.

Fasting

The act of voluntarily abstaining from some or all food, drink, or both, for a period of time.

Liver

A large vital organ in vertebrates involved in numerous metabolic processes, including detoxification, protein synthesis, and the production of biochemicals necessary for digestion.

Carrier Molecules

Molecules that facilitate the transport of substances across a cell membrane, including ions, sugars, and small molecules, by undergoing a change in shape.