A stock in WGS Enterprises is currently selling at $4 i per share. By using Table 17-1, what is the value of a call option to purchase a share for $60 one year from now if the risk free rate is 2% per year and the standard deviation of returns on the stock is 25% per year? What is the value of a call option four years from now? Suppose the standard deviation is 50% and recompute the same values. What are your conclusions about the relationships between option values and these parameters? Multiply the percentage in the table by the share price to get the approximate value of the call option. NPV, =Share price+ PV of exercise price ori 0.5 0.6 0.7 0.8 0.9 1 1.1 1.2 1.3 1.4 1.5 2 1% 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 0% 2.60% 9.80% 19% 29% 38.80% 48% 56.50% 290 5.10% 13.70% 23.60% 33.50% 42.90% 8.20% 17.80% 27.70% 37.40% 46.50% 54.80% 62.40% 2.80% 12% 21.80% 31.60% 40.90% 49.60% 57.50% 64.60% 5.90% 15.70% 25.60% 35% 44.60% 52.30% 60.20% 66.60% 10% 19.70% 29.20% 38.30% 46.80% 54.70% 61.80% 68.30% 14.70% 23.70% 32.70% 41.20% 49.30% 56.80% 63.60% 69.80% 20% 27.60% 35.90% 44% 51.60% 58.80% 65.30% 71.10% 24.70% 31.30% 39% 46.50% 53.709 60.50% 66.70% 72.30% 29.40% 34.80% 41.70% 48.80% 55.70% 62.10% 68% 73.40% 33.80% 38% 44.30% 50.90% 57.40% 63.60% 69.20% 74.40% 50% 51.30% 55% 59.50% 64.50% 69.40% 74% 78.30% 51.70% 59.70%