Problem $16-02$

Joel Franklin is a portfolio manager responsible for derivatives. Franklin observes an American$-$style option and a European$-$style option with the same strike price, expiration, and underlying stock. Franklin believes that the European$-$style option will have a higher premium than the American$-$style option. Franklin is asked to value a one$-$year European$-$style call option for Abaco Ltd$.$ common stock, which last traded at $$43\mathrm{.}00.$ He has collected the following information:

$\backslash$table$[[$Closing stock price,$$43\mathrm{.}00$