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What is the intrinsic value and value of call option

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Reference no: EM131537328

T-bills currently yield 4.6 percent. Stock in Nina Manufacturing is currently selling for $83 per share. There is no possibility that the stock will be worth less than $76 per share in one year.

a-1. What is the value of a call option with a $63 exercise price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  Call option value $   

a-2. What is the intrinsic value? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

  Intrinsic value $   

b-1. What is the value of a call option with a $50 exercise price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  Call option value $   

b-2. What is the intrinsic value? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

  Intrinsic value $   

c-1. What is the value of a put option with a $63 exercise price? (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

  Put option value $   

c-2. What is the intrinsic value? (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

  Intrinsic value $

Reference no: EM131537328

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