Question
The price of Time Squared Corp. stock will be either $54 or $85 at the end of the year. Call options are available with one
The price of Time Squared Corp. stock will be either $54 or $85 at the end of the year. Call options are available with one year to expiration. T-bills currently yield 3 percent.
a. Suppose the current price of Time Squared stock is $71. What is the value of the call option if the exercise price is $66 per share? (Round your answer to 2 decimal places. (e.g., 32.16)) Call option value $
b. Suppose the current price of Time Squared stock is $71. What is the value of the call option if the exercise price is $76 per share? (Round your answer to 2 decimal places. (e.g., 32.16)) Call option value $
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