Montreal Smoked Meat shares are selling for $55.00. The 2-year put option on XYZ shares has the following characteristics: strike = $50, price = $0.25.Given that the risk-free rate is 2%, what is the price of a 2-year call option on XYZ shares with an exercise price of $50?

Question 15 options:

a) 5.25

b) 7.19

c) -4.75

d) 0