Calculate the value of a bws call option

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Reference no: EM13926695

The BWS Corporation stock is selling at $50 a share today.

a. Calculate the value of a BWS call option if its exercise price is $40 and it expires today.

b. What can you say about the value of a BWS call option if its exercise price is $40 and it expires in six months?

c. Calculate the value of a BWS call option if its exercise price is $60 and it expires today.

d. What can you say about the value of a BWS call option if its exercise price is $60 and it expires in six months?

Reference no: EM13926695

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