Problem #3: An investor buys a 7-month cap on a stock. The price of the call option is $19.41. The current price of the stock is [3 marks] $38. The annual effective risk-free rate is 14%. Determine the range of prices for the stock at expiration for which the investor makes a positive profit. (A) Greater than (B) Less than Problem #3(a): Select (A) 18.07 (B) 21.07 (C) 17.07 (D) 20.07 (E) 19.07 Problem #3(b): Select v