4. Explain the considerations facing a covered call writer regarding the choice of exercise prices. The following option prices were observed for a stock for July 6 of a particular year. Use this information in problems 5 through 10. Ignore dividends on the stock. The stock is priced at 165.13. The expirations are July 17, August 21, and October 16. The continuously compounded risk-free rates are 0.0503, 0.0535, and 0.0571, respectively. The standard deviation is 0.21. Assume that the options are European.