The price of Chive Corp. stock will be either $$57$ or $$84$ at the end of the year. Call options are available with one year to expiration. T$-$bills currently yield $4$ percent.

$2$ a$.$ Suppose the current price of the company's stock is $$65.$ What is the value of the call option if the exercise price is $$50$ per share?

b$.$ Suppose the exercise price is $$60$ in part $($a$).$ What is the value of the call option now?

$3$

Input Area:

$\begin{array}{cc}\text{L}\text{o}\text{w}\text{s}\text{t}\text{o}\text{c}\text{k}\text{p}\text{r}\text{i}\text{c}\text{e}& \text{\$}57\\ \text{H}\text{i}\text{g}\text{h}\text{s}\text{t}\text{o}\text{c}\text{k}\text{p}\text{r}\text{i}\text{c}\text{e}& \text{\$}84\\ T-\text{b}\text{i}\text{l}\text{l}\text{s}& 4\%\\ \text{C}\text{u}\text{r}\text{r}\text{e}\text{n}\text{t}\text{p}\text{r}\text{i}\text{c}\text{e}& \text{\$}65\\ \text{E}\text{x}\text{e}\text{r}\text{c}\text{i}\text{s}\text{e}\text{p}\text{r}\text{i}\text{c}\text{e}& \text{\$}50\\ \text{E}\text{x}\text{e}\text{r}\text{c}\text{i}\text{s}\text{e}\text{p}\text{r}\text{i}\text{c}\text{e}& \text{\$}60\end{array}$

$($Use cells A$6$ to B$11$ from the given information to complete this question.$)$

Output Area:

$\begin{array}{cc}\text{C}\text{a}\text{l}\text{l}\text{p}\text{r}\text{i}\text{c}\text{e}& ?\\ \text{C}\text{a}\text{l}\text{l}\text{p}\text{r}\text{i}\text{c}\text{e}& ?\end{array}$