What is the value of a call option with a exercise price

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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.

Problem 1:
What is the value of a call option with a $74 exercise price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Problem 2: What is the intrinsic value?

Reference no: EM132794126

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