Exhibit 14.4

The current stock price of ABC Corporation is $53.50. ABC Corporation has the following put and call option prices that expire six months from today. The risk-free rate of return is 5 percent, and the expected return on the market is 11 percent.

Exercise Price	Put Price	Call Price
50	$1.50	$5.75
55	$3.25	---

Refer to Exhibit 14.4. What should the price be of a call option that expires six months from today with an exercise price of $55?

	a.	$1.33
	b.	$3.08
	c.	$4.58
	d.	$6.07
	e.	$6.33