The price of Chive Corporation stock will be either $$70$ or $$90$ at the end of the year.

Call options are available with one year to expiration. T$-$bills currently yield $6$ percent.

points

References

Suppose the current price of the company's stock is $$75.$ What is the value of the call

option if the exercise price is $$65$ per share?

Call value

Suppose the exercise price is $$85$ in requirement $1.$ What is the value of the call option

now?