You have observed the following monthly closing prices for stock XYZ: The following are one-year European options

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You have observed the following monthly closing prices for stock XYZ:

Date January 31, 2008 February 29, 2008 March 31, 2008 April 30, 2008 May 31, 2008 June 30, 2008 July 31,

The following are one-year European options on stock XYZ. The options were issued on December 31, 2007.

(i) An arithmetic average Asian call option (the average is calculated based on monthly closing stock prices) with a strike of 100.

(ii) An up-and-out call option with a barrier of 125 and a strike of 120.

(iii) An up-and-in call option with a barrier of 120 and a strike of 110.

Calculate the difference in payoffs between the option with the largest payoff and the option with the smallest payoff.

(A) 5

(B) 10

(C) 15

(D) 20

(E) 25

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