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ou purchased a share of XYZ Corporation at 2 5 , and it has now increased to 4 5 . You are given: ( i

ou purchased a share of XYZ Corporation at 25, and it has now increased to 45.
You are given:
(i) the annual risk free rate is 5%;
(ii) the price for a three month call option with an exercise price of 35 is 13;
(iii) XYZ does not pay dividends; and
(iv) you want to lock in a sale price of at least 35 for the next three months.
What is the cost of the option that achieves this result?

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