A call option provides a payoff at time T of max(ST-K, 0) yen, where ST is the dollar price of g

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Accepted Answer

First, let's define the variables:
- $S_T$ is the dollar price of gold at time $T$
- $K$ is the

A call option provides a payoff at time $T$ of $\max \left(S_T-K, 0\right)$ yen, where $S_T$ is the dollar price of gold at time $T$ and $K$ is the strike price. Assuming that the storage costs of gold are zero and defining other variables as necessary, calculate the value of the contract.