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Totally lost on this one Suppose a share of stock sells for $55. The risk-free rate is 6 percent, and the stock price in one

image text in transcribedTotally lost on this one

Suppose a share of stock sells for $55. The risk-free rate is 6 percent, and the stock price in one year will be either $61 or $71. a. What is the value of a call option with an exercise price of $61? (Leave no cells blank be certain to enter "O" wherever required.) b. Calculate the minimum return on the stock required to get the option in the money (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Call option value b.Minimum stock return

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