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Suppose a share of stock sells for $60. The risk-free rate is 6 percent, and the stock price in one year will be either $66

Suppose a share of stock sells for $60. The risk-free rate is 6 percent, and the stock price in one year will be either $66 or $76. (Leave no cells blank - be certain to enter "0" wherever required.)

a.

What is the value of a call option with an exercise price of $66?

Call option value $

b.

Calculate the minimum return on the stock required to get the option in the money. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Minimum stock return %

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