The common stock of the corp. is selling for $43.90 a share. U.S. Treasury bills are currently

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Question:

The common stock of the corp. is selling for $43.90 a share. U.S. Treasury bills are currently yielding 4.5%. What is the current value of a one-year call option on the stock if the exercise price is $37.50 and you assume the option will finish in the money?

a. $6.12

b: $6.69

c. $8.01

e. $7.67