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Consider This Graph of a Call Option

Question 79

Multiple Choice

Consider this graph of a call option.The option is a three-month American call option on €62,500 with a strike price of $1.50 = €1.00 and an option premium of $3,125.What are the values of A,B,and C,respectively? Consider this graph of a call option.The option is a three-month American call option on €62,500 with a strike price of $1.50 = €1.00 and an option premium of $3,125.What are the values of A,B,and C,respectively?   A) A = $3,125 (or $.05 depending on your scale) ; B = $1.50; C = $1.55 B) A = €3,750 (or €.06 depending on your scale) ; B = $1.50; C = $1.55 C) A = $.05; B = $1.55; C = $1.60 D) none of the options


A) A = $3,125 (or $.05 depending on your scale) ; B = $1.50; C = $1.55
B) A = €3,750 (or €.06 depending on your scale) ; B = $1.50; C = $1.55
C) A = $.05; B = $1.55; C = $1.60
D) none of the options

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