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21. The price of Tara, Inc, stock will be either $81 or $103 at the end of the year. Call options are available with one
21. The price of Tara, Inc, stock will be either $81 or $103 at the end of the year. Call options are available with one year to expiration T-bills currently yield 7 percent a. Suppose the current price of the company's stock is $92. What is the value of the call option if the exercise price is $77 per share? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Call value b. Suppose the current price of the company's stock is $92 What is the value of the call option if the exercise price is $87 per share? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Call value
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