Question: Given the following parameters use risk-neutral valuation to value a call option. Current stock price:$85.00Stock will increase or decrease next year by:15 pct.Call Option strike

Given the following parameters use risk-neutral valuation to value a call option.

Current stock price:$85.00Stock will increase or decrease next year by:15 pct.Call Option strike price:$82.00Time to expiration:1 yearRisk free rate:8 pct.

What's the answer?

Value of call: $11.18

Value of call: $9.07

Value of call: $14.58

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