1. Assume that the current stock price is $50 per share, the exercise price is $46 per share, the risk-free rate is 2.00%, time to expiration is 9 months and the standard deviation of the underlying stock price is 20%. The current call option price should be closest to:

Group of answer choices

$1.46

$4.00

$6.15

$0

2. A mutual fund with significantly higher expenses than the average for its category

Group of answer choices

is more likely to perform on an equal basis with its peers on average.

is more likely to underperform its peers on average.

is more likely to outperform its peers on average.

will always outperform its peers because higher expenses can pay for better managers.