You calculate the Black-Scholes value of a call option as $3.75 for a stock that does not pay dividends, but the actual call price is $3.50. The most likely explanation for the discrepancy is that either the option is ________ or the volatility you input into the model is too ________.

A.overvalued and should be purchased; high

B.overvalued and should be written; low

C.undervalued and should be written; low

D.undervalued and should be purchased; high