23) You calculate the Black-Scholes value of a call option as $3.50 for a stock that does not pay dividends, but the actual call price is $3.75. The most likely explanation for the discrepancy is that either the option is ___ or the volatility you input into the model is too ___.

Multiple Choice undervalued and should be purchased; high overvalued and should be written; low undervalued and should be written; low overvalued and should be purchased; high