You can buy each of the following items of information about an American call option for $10

Question:

You can buy each of the following items of information about an American call option for $10 apiece: PV (exercise price); exercise price; standard deviation × square root of time to maturity; interest rate (per annum); time to maturity; value of European put; expected return on stock.

How much would you need to spend to value the option? Explain.

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...