You own 100 shares of GME corp, which is currently trading at $40 per share. A $40 strike price call on GME, expiring in 1-month costs $2.50. A bunch of Reddit degenerate gamblers, which call themselves "WallStreetBets", decide to all buy GME at once. However, many hedge funds take the opposite side of the trade going short GME, as they believe they are smarter/more sophisticated than the Reddit degenerate gamblers. While the stock is still around $40, due to this utter insanity, GME's volatility, which was around 40% annualized before, now skyrockets to 160% annualized. There are still 29 days remaining until the call expires. The value of the GME call is now __________________.

Group of answer choices

much lower than $2.50.

a little lower than $2.50.

much higher than $2.50.

a little higher than $2.50.

exactly $2.50.