Joe plans to purchase a greyhound, but does not currently have capital for its current market value of $560,000. Joe offered to purchase a call option on the greyhound where the current value is $560,000, the price Joe can buy they greyhound is $600,000, the right to purchase expires in 42 weeks, the risk-free rate = 2.9%, and the standard deviation of the greyhound values is 33%.

Compute the value of the call option and what decision should Joe make at he end of 42 weeks.

Under what conditions could Joe lose 100% of his investment?