Question
T-bills currently yield 3.5 percent. Stock in Nina Manufacturing is currently selling for $72 per share. There is no possibility that the stock will be
T-bills currently yield 3.5 percent. Stock in Nina Manufacturing is currently selling for $72 per share. There is no possibility that the stock will be worth less than $65 per share in one year. |
a-1. | What is the value of a call option with a $52 exercise price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
Call option value | $ |
a-2. | What is the intrinsic value? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
Intrinsic value | $ |
b-1. | What is the value of a call option with a $49 exercise price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
Call option value | $ |
b-2. | What is the intrinsic value? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
Intrinsic value | $ |
c-1. | What is the value of a put option with a $52 exercise price? (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
Put option value | $ |
c-2. | What is the intrinsic value? (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
Intrinsic value | $ |
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