What is the value of the option if job growth

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Reference no: EM131545747

Suppose that you purchased a conventional call option on growth in Non-Farm Payrolls (NFP) with an exercise price of 207,500 jobs. The NFP conventional contract pays out $115 for every job created in excess of the exercise price.

a. What is the value of the option if job growth is 194,500? (Round your answer to the nearest dollar.)

Option value $

b. What is the value of the option if job growth is 215,000? (Round your answer to the nearest dollar.)

Option value $

Reference no: EM131545747

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