Alphabet's earnings announcement for the first quarter of 2021 is scheduled for tomorrow. The consensus among analysts is that there is a 60% chance that Alphabet will announce earnings that exceed expectations. If this happens, the stock price will rise to $2,650. There is a 20% chance that the earnings will be disappointing which causes the stock price to drop to $2,170. Also, there's a 20% chance that the earnings will be exactly as much as analysts expected. In this case, the stock price will not change. Alphabet's current stock price is $2,300. As a speculating investor, I have decided to buy 200 call options on Alphabet's stock with the strike price of $2,250 that expires on the day of the announcement. 

Ignoring time value of money, what is the value of the options that I have right now?

Answer rating: 100% (QA)

To calculate the value of the call options you currently hold you can use the BlackScholes option pr... View the full answer