Call option value-put option value and intrinsic value

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Reference no: EM131919621

T-bills currently yield 5.0 percent. Stock in Deadwood Manufacturing is currently selling for $87 per share. There is no possibility that the stock will be worth less than $80 per share in one year.

a-1. What is the value of a call option with a $76 exercise price? (Round your answer to 2 decimal places, e.g., 32.16.)

  Call option value $

a-2 What is the intrinsic value?

  Intrinsic value $

b-1. What is the value of a call option with a $68 exercise price? (Round your answer to 2 decimal places, e.g., 32.16.)

  Call option value $

b-2What is the intrinsic value?

  Intrinsic value $

c-1. What is the value of a put option with a $76 exercise price?

  Put option value $

c-2. What is the intrinsic value?

  Intrinsic value $

Reference no: EM131919621

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