What is the intrinsic value-what is the value of call option

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T-bills currently yield 3.6 percent. Stock in Deadwood Manufacturing is currently selling for $73 per share. There is no possibility that the stock will be worth less than $66 per share in one year.

a-1 What is the value of a call option with a $50 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 $48 exercise price? (Round your answer to 2 decimal places, e.g., 32.16.)

 Call option value $   

b-2 What is the intrinsic value?

Intrinsic value $

c-1 What is the value of a put option with a $50 exercise price?

Put option value $   

c-2 What is the intrinsic value?

Intrinsic value

Reference no: EM132031726

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