Mr. A is working in BB company and he is performing very well in the company. The company gives a bonus in the form of a call option for his best performance. The strike price of the call option is $51.00 and the current stock price is $60.00. The call option expires after five years from today. The expected price at expiration time is $55.00. Calculate the intrinsic value and expected return on the call option.

Choose an answer

A: Intrinsic value is $9.00 and expected return on call option is $4.00. B: Intrinsic value is $11.33 and expected return on call option is $21.60.

C: Intrinsic value is $35.00 and expected return on call option is $6.11. D: Intrinsic value is $25.00 and expected return on call option is $4.44.