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YBMs stock price S is $102 today. After six months, the stock price can either go up to $115.63212672, or go down to $93.52995844. Options
YBMs stock price S is $102 today. After six months, the stock price can either go up to $115.63212672, or go down to $93.52995844. Options mature after T = 6 months and have an exercise price of K = $105. The continuously compounded risk-free interest rate r is 5 percent per year. Given the above data, suppose that a trader quotes a call price of $6. Then the arbitrage profit that you can make today by trading this call and related securities is:
Group of answer choices
$1.22
$0.81
$0
$0.25
please provide explantion
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