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The price of Cilantro, Inc., stock will be either $83 or $105 at the end of the year. Call options are available with one year
The price of Cilantro, Inc., stock will be either $83 or $105 at the end of the year. Call options are available with one year to expiration. T-bills currently yield 5 percent. 11 points a. Suppose the current price of the company's stock is $94. What is the value of the call option if the exercise price is $79 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 $94. What is the value of the call option if the exercise price is $89 per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) X 03:49:58 29.59 Skipped eBook Hint a. Call value b. Call value Print References
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