The common stock of the Pat plc. corporation has been trading in a narrow range around 145

per share for months, and you believe it is going to stay in that range for the next 12 months. The

price of a 12-month European put option with an exercise price of 145 is 8.19.

i) If the risk-free interest rate is 9% per year, what must be the price of a 12-month call option

on Pat plc. stock at an exercise price of 145 if it is at the money? (The stock pays no

dividends).