What is the intrinsic value and value of a call option

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Reference no: EM131360809

T-bills currently yield 3.9 percent. Stock in Deadwood Manufacturing is currently selling for $76 per share. There is no possibility that the stock will be worth less than $69 per share in one year.

a-1. What is the value of a call option with a $58 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 $45 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 $58 exercise price?

  Put option value $   

c-2 What is the intrinsic value?

  Intrinsic value $

Reference no: EM131360809

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