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The price of Cilantro, Inc., stock will be either $76 or $98 at the end of the year. Call options are available with one year
The price of Cilantro, Inc., stock will be either $76 or $98 at the end of the year. Call options are available with one year to expiration. T-bills currently yield 5 percent. a. Suppose the current price of the company's stock is $87. What is the value of the call option if the exercise price is $72 per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Suppose the current price of the company's stock is $87. What is the value of the call option if the exercise price is $82 per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Call value b. Call value
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