Calculate the intrinsic value for each of the following call options. (Round your answers to 2 decimal places.) Company Time to Expiration (months) Strike S0 Intrinsic Value RJay 1 60 62.92 RJay 2 70 62.84 Sell-Mart 5 60 63.80 Xenon 6 7.50 6.78 b.

Now assume that the effective annual interest rate is 6.82%, which corresponds to a monthly interest rate of 0.55%. 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 Time to Expiration (months) Strike S0 PV(X) Adjusted Intrinsic Value RJay 1 60 62.92 RJay 2 70 62.84 Sell-Mart 5 60 63.80 Xenon 6 7.50 6.78

Check my work a. Calculate the intrinsic value for each of the following call options. (Round your answers to 2 decimal places.) Time to Expiration (months) points - Intrinsic Value Strike 60 Company RJay RJay Sell-Mart Xenon 70 so 62.92 62.84 63.80 6.78 eBook 60 7.50 Print References b. Now assume that the effective annual interest rate is 6.82%, which corresponds to a monthly interest rate of 0.55%. Calculate the present value of each call option's exercise price and the adjusted intrinsic value for each call option. (Round your answers to 2 decimal places.) Time to Expiration (months) Adjusted Intrinsic Value PV (X) Company RJay RJay Sell-Mart Xenon Strike 60 70 60 7.50 So 62.92 62.84 63.80 6.78