Assume S = $31.75, div = 0, r = 0.03, and ? = 0.20, and 90 days until the expiration of a standard call option. A call on call compound option with an exercise price of $2.00 has 180 days until expiration
What is the premium of the call on call option?
A) $1.46
B) $2.46
C) $3.04
D) $3.53
A
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