A speculator can choose between $($i$)$ buying $110$ shares of a stock for $$32\mathrm{.}61$ per share, and $($ii$)$ buying $1100$ European call options on that stock with a strike price of $$41$ for $$4\mathrm{.}98$ per option. What is the stock price at maturity that would make the two alternatives equally profitable?

Question $4$Answer

a$.$

$$1\mathrm{.}49$

b$.$

$$47\mathrm{.}47$

c$.$

$$42\mathrm{.}72$

d$.$

$$13\mathrm{.}37$

e$.$

$$45\mathrm{.}95$