Answer:
Call Value = $9.62
so correct option is d. $9.62
Step-by-step explanation:
given data
stock price = $64
rate of return = 5%
exercise price = $55
expiration date = 73 days
put option price = $0.074
to find out
call value option should be worth
solution
we will apply here according to the Put Call Parity that is
Put Value + Stock Price = Call Value + [Exercise Price ×
] ..........1
put here value we get
$0.074 + $64 = Call Value + [$55 ×
]
solve it we get
Call Value = $9.62
so correct option is d. $9.62