QUESTION 6

1. Is it reasonable that:

   For Stock ABC with the December Forward at: $900.

   A call option on ABC, with a strike of $850, costs $30?

   	A.	No because the minimum intrinsic is $50.
   	B.	Yes because it depends on the distribution; that is defined by the volatility and time to maturity
   	C.	No, because $30 feels low for a stock with such a high price per share.
   	D.	Yes because it can be that Intrinsic is $50, Extrinsic negative $20