Question
T-bills currently yield 4.3 percent. Stock in Nina Manufacturing is currently selling for $80 per share. There is no possibility that the stock will be
T-bills currently yield 4.3 percent. Stock in Nina Manufacturing is currently selling for $80 per share. There is no possibility that the stock will be worth less than $73 per share in one year. (Do not round intermediate calculations. Do not leave any empty spaces; input a 0 wherever it is required. Round the final answers to 2 decimal places. Omit $ sign in your response.)
a-1. What is the value of a call option with a $64 exercise price?
Call option value $
a-2. What is the intrinsic value?
Intrinsic value $
b-1. What is the value of a call option with a $54 exercise price?
Call option value $
b-2. What is the intrinsic value?
Intrinsic value $
c-1. What is the value of a put option with a $64 exercise price?
Put option value $
c-2. What is the intrinsic value?
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