Suppose you believe that Big Box Inc.'s stock price is going to increase from its current level of $19.75 sometime during the next 6 months. For $2.90 you can buy a 6-month call option 16. giving you the right to buy 1 share at a price of $25 per share. If you buy this option for $2.90 and Big Box's stock price actually rises to $37, what would your pre-tax net profit be? CHAPTER 8 C $5.25 C $9.10 C $12.00 C $22.50