a. Calculate the intrinsic value for each of the following call options. (Round your answers to 2 decimal places.)

b. Now assume that the effective annual interest rate is 6.70%, which corresponds to a monthly interest rate of 0.54%. Calculate the present value of each call options exercise price and the adjusted intrinsic value for each call option. (Round your answers to 2 decimal places.)

Company RJay RJay Sell-Mart Xenon Time to Expiration (months) 1 2 5 6 Strike 60 70 60 7.50 SO 62.92 62.84 69.80 6.78 Intrinsic Value Company RJay RJay Sell-Mart Xenon Time to Expiration (months) 1 2 5 CO Strike 60 70 60 7.50 SO 62.92 62.84 69.80 6.78 PV(X) Adjusted Intrinsic Value