Warner Motors' stock is trading at $20 a share. Call options that expire in 3 months with a strike price of $20 sell for $1.50. Which of the following will occur if the stock price increases 10%, to $22 a share?

(a) The price of the call option will increase by $2.

(b) The price of the call option will increase by more than $2.

(c) The price of the call option will increase by less than $2, and the percentage increase in price will be less than 10%.

(d) The price of the call option will increase by less than $2, but the percentage increase in price will be more than 10%.

(e) The price of the call option will increase by more than $2, but the percentage increase in price will be less than 10%.