A stock is selling for $45.75, with a call option available at a $40 strike that has a premium of $7.50. What is the speculative premium of the call?
A)$.75
B)$1.75
C)$5.00
D)$5.75
E)$7.50

Question

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The Answer of A stock is selling for $45.75, with a call option available at a $40 strike that has a premium of $7.50. What is the speculative premium of the call?
A)$.75
B)$1.75
C)$5.00
D)$5.75
E)$7.50

A Stock Is Selling for $45