In the table below, you see the data on four Wal-Mart call options, recorded on 4/13/20. All options expire May 1, 2020. The price of Wal-Mart stock was $125, and all Black-Scholes prices were calculated under the assumption of 30% volatility.

For which of the options is the statement in the last column correct? No calculations are required to answer this question.

Option	Strike Price	Black-Scholes Price	Implied Volatility	Observed Option Price
A	130	1.76	27.3%	less than 1.76
B	120	6.81	31.5%	less than 6.81
C	145	0.07	35.00%	less than 0.07
D	150	0.02	37.50%	less than 0.02

	a.	D
	b.	A
	c.	C
	d.	B