Explanation

Correct Answer: B
The upper bound of a call option price is the price of the underlying asset. This is because a rational investor would not pay more for the right to buy the underlying asset than the asset's current market price. If the call option price exceeded the underlying asset's price, it would be cheaper to buy the asset directly rather than purchasing the option.

Incorrect Answers:

• A: The exercise price is not the upper bound of a call option price. It represents the strike price at which the option can be exercised, but it does not limit the call option's price.
• C: This represents the lower bound of a call option price, not the upper bound. The lower bound is derived from the underlying asset's price minus the present value of the exercise price (or zero, whichever is greater).