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The following date, the stock closes at $102. The JUN 100 call is trading at $19.88, while the JUN 105 call is trading at $19.7031.

The following date, the stock closes at $102. The JUN 100 call is trading at $19.88, while the JUN 105 call is trading at $19.7031. How much is your investment now worth? How much you would end up with if you had invested all the money in a risk-free bond in the very beginning? (Assuming continuous compounding).

  1. $35,623.56 and $38,925.80
  2. $38,914.07 and $38,925.80
  3. $41,356.21 and $40,325.16
  4. $45,726.32 and $40,325.16

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