Exhibit 14-1 THE FOLLOWING INFORMATION IS FOR THE NEXT PROBLEM(S)

Multiple Choice

Exhibit 14-1
THE FOLLOWING INFORMATION IS FOR THE NEXT PROBLEM(S)
A stock currently trades for $130 per share. Options on the stock are available with a strike price of $125. The options expire in 10 days. The risk free rate is 3% over this time period, and the expected volatility is 0.35.
-Refer to Exhibit 14-1. Use the Black-Scholes option pricing model to calculate the price of a call option.

A) $5.19
B) $4.35
C) $3.93
D) $6.19
E) $8.17