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25. Determine the value of an interest rate call option at the maturity of a loan if the call has a strike of 12%, a

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25. Determine the value of an interest rate call option at the maturity of a loan if the call has a strike of 12%, a face value of $50 million, the loan matures 90 days after the call is exercised, the call expires in 60 days, the call premium is $200,000 and LIBOR ends up at 13%. Use a 360-day year for calculation. $83,333 $75,000 $208,000 $125,000 A) B) C) D)

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