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A call option has a strike price of X = $100 and a time to expiration of 9 months. The risk free rate is r
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A call option has a strike price of X = $100 and a time to expiration of 9 months. The risk free rate is r = 2.5% and the volatility is sigma = .15. If S = 102.50, then the intrinsic value of the call option is
a. -$2.50
b. $2.50
c. $0.00
d. $0.15
e. $97.50
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