What is the value of a 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.)

a-2.What is the 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.)b-2.What is the intrinsic value?

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

c-2.What is the intrinsic value?

Reference no: EM132726104

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