Question: Answer the following question: On March 6, 2001, Prabhu Tech was trading at $13.62 per share. The strike price is $15. The call price on

Answer the following question:

On March 6, 2001, Prabhu Tech was trading at $13.62 per share. The strike price is $15. The call price on March 6, 2001 was $2. Value of the call option is $2.24.

Was the call option over, under, or correctly valued? Explain.

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