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T-bills currently yield 4.8 percent. Stock in Danotos Manufacturing is currently selling for $85 per share. There is no possibility that the stock will be
T-bills currently yield 4.8 percent. Stock in Danotos Manufacturing is currently selling for $85 per share. There is no possibility that the stock will be worth less than $78 per share in one year.
What is the value of a call option with a $70 exercise price?
What is the value of a call option with a $60 exercise price?
What is the value of a put option with a $70 exercise price?
What is the intrinsic value?
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