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The price of Chive Corporation stock will be either $ 6 0 or $ 7 5 at the end of the year. Call options are

The price of Chive Corporation stock will be either $60 or $75
at the end of the year. Call options are available with one year to
expiration. T-bills currently yield 6 percent.
1. Suppose the current price of the company's stock is $65. What is
the value of the call option if the exercise price is $55 per
share?2. Suppose the exercise price is $70 in requirement 1. What is
the value of the call option now?
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.
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?
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\table[[Low stock price,$57
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