Calculating Option Values [LO2] T-bills currently yield 3.4 percent. Stock in Deadwood Manufacturing is currently selling for $67 per share. There is no possibility that the stock will be worth less than $60 per share in one year. a. What is the value of a call option with a $55 exercise price? What is the intrinsic value? b. What is the value of a call option with a $45 exercise price? What is the intrinsic value? c. What is the value of a put option with a $55 exercise price? What is the intrinsic value? Understanding Option Quotes [LO1] Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $85. a. Are the call options in the money? What is the intrinsic value of an RWJ Corp. call option? b. Are the put options in the money? What is the intrinsic value of an RWJ Corp. put option? c. Two of the options are clearly mispriced. Which ones? At a minimum, what should the mispriced options sell for? Explain how you could profit from the mispricing in each case