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A call option with an exercise price of 25 has the following values at these prices Stock price Call option price 25 3.00 30 7.50
- A call option with an exercise price of 25 has the following values at these prices
| Stock price | Call option price |
| 25 | 3.00 |
| 30 | 7.50 |
| 35 | 12.00 |
| 40 | 16.50 |
| 45 | 21.00 |
| 50 | 25.50 |
Determine the option premium. (3 marks)
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
8th edition
77861620, 978-0077861629
