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What is the value of a call option

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Question - T-bills currently yield 4.9 percent. Stock in Nina Manufacturing is currently selling for $86 per share. There is no possibility that the stock will be worth less than $79 per share in one year.

a-1. What is the value of a call option with a $74 exercise price?

a-2.What is the intrinsic value?

b-1. What is the value of a call option with a $62 exercise price?

b-2. What is the intrinsic value?

c-1. What is the value of a put option with a $74 exercise price?

c-2. What is the intrinsic value?

Reference no: EM132784750

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