Question: The table below contains the implied volatility and option price for a series of call options of varying strike prices and varying time to expiration.

 The table below contains the implied volatility and option price for

The table below contains the implied volatility and option price for a series of call options of varying strike prices and varying time to expiration. The current stock price is $74.90. Suppose I want to buy the at the money option which is relatively cheapest. Which option should I buy? Implied Volatility December January April (T-017) (T-0.25) (1-0.50) 0.300 0.280 0.320 April X Actual option price December January TL17) T-0.25) T=0.50) 435 5.89 6.95 70 75 0.284 0.275 0.290 2.46 3.02 4.40 80 0.257 0.269 0.285 0.77 1.13 2.20 April,X-75 January, X 70 December, X-80 JanuaryX-75 December, X-75

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